The broker channel continues to evolve nationwide amid mixed signals, with some lenders doubling down on their proprietary channels even as broker market share keeps climbing.
That uncertainty is playing out against a broader backdrop of persistent inflation, elevated interest rates, looming tax changes and ongoing global volatility.
But Christa Malkin, general manager aggregation at AFG (pictured above), said those conditions are exactly what reinforces the value brokers bring to customers.
"What we can say is that in times of uncertainty, customers always return to brokers," Malkin said at the aggregator's AFG Now roadshow in Sydney. "So we're in a great, strong position to be able to continue to support customers with what is next, and continue to support them in their journey, whatever that might look like over the course of the next 12 months."
Still, the industry is facing growing challenges. Recent reports suggest mortgage fraud is not only increasing — with things like borrowers allegedly falsifying or manipulating documents by way of AI to secure loans they otherwise would not qualify for — but that it has ballooned into a multi-billion-dollar problem. Referral and cyber risks are also emerging as growing concerns.
In addition, the Australian Securities and Investments Commission (ASIC) began its first review of the mortgage broker Best Interests Duty (BID) in mid-2025, requesting information from several major aggregators on their compliance frameworks, broker oversight processes and documentation, among other areas. The review remains ongoing.
As a result, brokers are under heightened scrutiny — and more vulnerable than ever.
"We've seen a huge uplift in the advent of risk matters," Malkin said. "Given AI has come in, it's a lot easier to detect anomalies now. [But] it's also a lot easier to be able to manufacture documents since AI has become mainstream."
She added that "referral risk is very much there [and] something that we all need to be aware of. If a referrer is packaging up documents to provide to you, those extra checks and balances are critically important. The onus sits fairly and squarely on the broker in any application that [they] proceed with. No matter how well you think you know a referral, it's so critical to make sure that you're asking those extra questions that you're doing, those extra checks. We urge [brokers] to not risk everything and to make sure you're asking the right questions."
On cyber security, Malkin recommended brokers should consider taking out cyber insurance.
"This is definitely something that you should be thinking about," she said. "One cyber incident can absolutely bring a business down."
She warned that cyber threats are "probably even more prevalent at the moment" thanks to AI. "Cyber risk is something that's still very much present," she said.
Malkin added that brokers should take proactive steps to strengthen their cyber defences and reduce the risk of attacks. At AFG, that starts with education across the entire business.
"Internally, the things we do at AFG are training and understanding," she said. "Not just yourself as a business owner, but anybody that might work in your team — whether that's onshore or offshore — making sure that they're really clear on some of the ways that cyber incidents can happen: phishing attempts, being able to infiltrate your system and act like you're somebody else.
"Make sure your team is really well-trained and has multiple resources around cyber and phishing and know what to look out for, what to look at in the domain, and when there should be suspicions raised," the GM continued. "It's not only about protecting the front line, but about building good cultural practices around cyber. And if the unthinkable was to happen, making sure your business is protected through cyber insurance, so that if there is a loss, you're protected.
"Brokers can lean into some of those resources that are available both from an aggregation perspective, and then as far as cyber insurance goes, to just really make sure they're protecting themselves," Malkin added. "Knowledge is power, and understanding the ways that it can happen is the first line of defense."
