Insights for Lenders from the Value of Mortgage and Finance Broking Report 2025

The Value of Mortgage and Finance Broking 2025 report has been released, marking a significant update since the 2018 publication. Commissioned by the MFAA and conducted by Deloitte, this report provides fresh insights into the industry’s growth and value over the past seven years.

As a leading technology provider in the lending ecosystem, NextGen was eager to sponsor the Value of Mortgage and Finance Broking 2025 report alongside other industry stakeholders. This comprehensive study, commissioned by the MFAA and conducted by Deloitte, offers crucial insights into how the industry has evolved since its last publication in 2018, particularly through regulatory changes, market growth, and technological advancement.

The report’s findings strongly align with what we’ve observed through our ApplyOnline^® platform: the increasing digitisation of lending processes, the critical role of brokers in driving innovation, and the evolution of lender-broker partnerships. Here are the key insights for lenders:

Driving innovation and operational efficiency

The broker channel plays a key role in driving technological innovation. From sophisticated CRM platforms to NextGen’s ApplyOnline, brokers leverage tools like digital identity verification, access seeker credit checks, and Open Banking to streamline the loan application process.

Tony Carn, NextGen Chief Customer Officer, commented “As robust data tools like Open Banking become more adopted, it will not only enhance broker efficiency but also provide lenders with higher-quality applications, enabling faster approval times and reduced costs and risks for lenders.” Our platform data shows that digital verification tools can reduce application processing times by up to 40%.

Cost-efficient and flexible sales channel

Brokers provide lenders with a scalable, variable-cost distribution model. Unlike proprietary channels with significant fixed costs for staffing, premises, and systems, broker costs align with loan origination volumes.

This flexibility is particularly advantageous for smaller lenders, who can adapt more easily to market fluctuations while maintaining service quality. Using digital platforms and tools that standardise loan applications, brokers also streamline processes by reducing duplication and ensuring applications are well-prepared before reaching lenders.

Expanding brand presence and market reach

Australia’s lending landscape comprises 138 Authorised Deposit-Taking Institutions (ADIs) and numerous non-ADI institutions. While the big four banks enjoy high consumer awareness, smaller lenders often struggle to gain visibility. Brokers bridge this gap, introducing borrowers to a wider range of lending options and promoting market diversity.

Brokers, on average, hold accreditations with 23 lenders, including 19 non-major lenders. This broad network allows brokers to offer diverse loan products, helping smaller lenders reach customers who may not otherwise consider them.

Enhancing accessibility and distribution

Mortgage brokers simplify the borrowing process by offering easy access to multiple lenders. In the September 2024 quarter, brokers facilitated 75% of all new home loans, demonstrating their critical role in connecting lenders with borrowers.

Brokers provide a cost-effective distribution channel, especially for smaller lenders seeking broader reach without the expense of physical branches. Even major lenders benefit, as brokers offer flexible, personalised service beyond traditional banking hours and in remote locations.

Strengthening lender-customer relationships

Brokers act as trusted advisors, aligning clients with suitable loan products and preparing high-quality applications that simplify lender onboarding. Their proactive approach to client communication—with 96% of brokers maintaining at least annual contact—helps lenders retain customers and address evolving needs. By fostering long-term relationships and providing ongoing support, brokers help lenders build customer loyalty and respond effectively to market dynamics.

The Value of Mortgage and Finance Broking 2025 report reinforces what we at NextGen have long recognised: the vital partnership between lenders, brokers, and technology providers drives industry innovation. As we continue supporting this ecosystem through our platforms, this collaboration will remain essential for delivering better customer outcomes and driving sustainable growth.