Refinance barriers ease for borrowers but job security fears on the rise

With the help of mortgage brokers, Australian borrowers are now finding it easier to refinance their home loans as interest rates and inflation ease; however, they also have growing concerns about job security and housing supply.

Ahead of the Reserve Bank of Australia board meeting on 29 and 30 September, there’s a growing sense of optimism from borrowers about meeting their loan repayments and their overall financial situation.

These are the key themes emerging from the Mortgage & Finance Association of Australia’s latest national survey of mortgage broker members.

The August 2025 Member Sentiment Survey provides data on how broker clients are feeling about their financial outlook and explores what strategies brokers are using to support their clients’ needs.

Just over 2.08% of MFAA members across Australia, which equates to 333 mortgage brokers, completed the August survey. It’s the second in a series that began in February 2025 and builds on trends revealed in the MFAA’s Refinance and Mortgage Stress Surveys in February and August 2024, and July 2023. 

In the latest survey, brokers report that 34% of their clients now feel positive about their financial outlook – a 1.5% increase compared to February 2025. Meanwhile, 47% remain neutral, down 3% from the last survey, and 19% feel negative, a slight increase of 1.5%. 

The top three reasons driving borrowers’ positive sentiment haven’t changed since February. They are interest rates, property equity and job security.

However, the August survey highlights for the first time that a cohort of broker clients are also concerned about their employment prospects. Those with a negative view about job security have risen from 4.8% in February to 18.3% in August. This factor is now the second highest driver of negative outlook. Cost of living remains the top reason, with housing supply in third.

MFAA CEO Anja Pannek said uncertainty over the global economy and concerns about the impact of AI could be leading to anxiety about job security, while the continuing shortfall in housing supply had also affected borrowers.

For clients with a neutral outlook, the cost of living is now the biggest driver (up from second), followed by housing supply (up from third). Interest rates have fallen to third spot (previously first).

Importantly, brokers are reporting that more borrowers are now able to refinance, signalling that serviceability pressures that had kept clients in “mortgage prison” have eased substantially.

“Brokers are reporting far fewer clients are unable to refinance due to serviceability requirements than in any of our previous surveys,” Ms Pannek said. “The situation has improved over the past two years. Even since February 2025, the number of clients brokers have helped refinance has doubled.” 

Ms Pannek said for those Australians who were locked out of refinancing their mortgage a few years ago, now is a great time to speak to your mortgage broker.

“Improved economic conditions mean refinancing to a more affordable home loan could be an achievable option today. The survey shows that 92% of brokers have clients who are using a broker for the first time to refinance.”

Ms Pannek said overall in the last six months, borrowers are feeling more positive across the board, and their outlook is improving.

“There are several factors that are contributing to this. Interest rates fell in February, May and August, inflation has eased, while modest wage growth, the stage three tax cuts and changes to HECS debt have all had an impact.”

Brokers still had some clients struggling with mortgage repayments, but this number had dropped since conditions for borrowers had eased.

The survey also revealed how mortgage brokers continued to assist their clients in a range of ways.

In the last six months:

•           99% of brokers have helped their clients secure a discount on their loan (up1%)

•           99% helped their clients refinance to a new lender (up 2%)

•           90% helped their clients with budgeting strategies (up 3%)

•           80% helped their clients to understand hardship options (up 12%)

“While we recognise that most borrowers have a more optimistic view of their financial situation, we also acknowledge that some mortgage holders are struggling, due to cost-of-living pressures and job uncertainty. They are looking to mortgage brokers for support and to help them understand their options,” Ms Pannek said.

“The important role brokers play in educating clients, building financial literacy, providing guidance on budgeting strategies and hardship options is a highlight of the survey.”

First home buyers are also an important customer segment for brokers. The data showed that 98% of brokers have first home buyer clients.

 “The Federal Government’s 5% Deposit Scheme (previously known as the Home Guarantee Scheme) is expanding on 1 October, so we are keen to monitor the impact on borrower sentiment.

“Our members tell us there’s plenty of interest in accessing the scheme. This is a positive. However, the survey results suggest that being able to secure a property is the next key challenge for borrowers.”

Ms Pannek said the survey reinforced how mortgage brokers remained the channel of choice for borrowers, driving competition in the lending market, and providing expert guidance no matter where clients are on their property journey. 

You can access the August 2025 Member Sentiment Survey fact sheet here.