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The mortgage broking industry in Australia and New Zealand is set for a year of intense competition, with interest rate cuts, a surge in refinancing, and the growing influence of digital marketing among the key trends shaping 2025.
Derwent Finance chief operating officer Rhianna Farnan predicts a wave of new mortgage brokers entering the field, drawn by flexible work arrangements and high earning potential.
“The appeal of broking is growing, with flexible work opportunities and high earning potential drawing in fresh talent. This means more competition, but also more innovation. The brokers who stand out will be the ones investing in personal branding, video marketing, and client experience,” Farnan said.
With interest rates expected to dip, many borrowers may look to refinance or access equity for home improvements. Farnan emphasised the need for brokers to maintain client relationships to reduce clawback risks.
“Brokers will need to ensure they are in contact with their clients on a regular basis to ensure they are not forgotten about and lessen the chances of a clawback,” Farnan said, adding that lenders are also expected to introduce tiered clawback structures, reducing penalties over time.
In New Zealand, a high volume of home loans is due for refixing in 2025, according to Jamie Sanderson, director and principal adviser at Jamie & Co Lending. He cautioned that while the NZ Reserve Bank has signalled rate cuts, fixed home loan rates may not drop as quickly as variable rates.
“With just over 80% of all mortgage borrowing due to be refixed in 2025, there will be existing and many new home loan clients out there needing advice from a mortgage adviser to look at their refix/refinance options,” Sanderson said.
Meanwhile, competition between brokers and banks is expected to escalate. Stephen Dinte, principal mortgage planner at Australian Mortgage Planners, said major banks will likely push direct-to-bank lending, while smaller lenders may strengthen their broker partnerships.
“The majors will continue to do everything possible to reduce the market share of brokers compared to their direct-to-bank business,” Dinte said.
Beyond home loans, brokers are likely to see increased demand from small-to-medium enterprises (SMEs) seeking finance, according to Trent Carter, partner at Accendo Financial: “SMEs across Australia are starting to call on brokers to help them navigate a complex lending landscape to get access to capital efficiently.”
With these changes on the horizon, the FBAA Regional Broker Roadshow offers brokers a chance to connect, learn, and adapt. The roadshow kicks off in Cairns on March 31 at the Novotel Cairns Oasis Resort from 9:30 a.m. to 2:00 p.m., featuring Ben Robinson from Farmer’s Finance Australia as the key speaker. The event is free for all brokers, with a focus on supporting regional professionals. Interested attendees can register at this link.
