Mortgage brokers continue to play a vital role in providing expert guidance and support to Australians as they grapple with home loan refinance barriers, cost of living pressures and managing their mortgage repayments, according to the latest national survey from the MFAA.
The research highlights mortgage stress is declining and whilst serviceability challenges remain – homeowners are finding it somewhat easier to refinance.
The February 2025 Member Sentiment Survey provides new data detailing how brokers are supporting their clients and how their clients are coping in the current economic environment.
The survey, which was completed by 321 mortgage brokers across the nation, builds on the MFAA’s previous Refinance and Mortgage Stress Surveys run in July 2023, and February and August 2024.
It featured a number of questions from the previous surveys, but also reveals for the first time how home loan borrowers are feeling about their financial outlook.
The Member Sentiment Survey shows a growing cautious optimism, with half of brokers (50%) reporting their clients felt “neutral” about their financial outlook, one-third felt “positive” (33%) and 17% expressed a negative outlook.
The main factors driving positive sentiment included the outlook on the interest rate environment (30%); existing property equity value (22%) and their employment and income situation (19%).
For those broker clients who displayed a neutral outlook, the cost of living (24%); interest rate environment (25%); housing supply outlook and availability of desired property (both 11%) were the dominant factors.
The cost of living (36%), interest rates (17%) and outlook on housing supply (14%) were the main drivers of negative sentiment.
“While cost of living overall is still a key issue, brokers are reporting that mortgage-holders are feeling better about their ability to pay their mortgage or refinance to a better deal,” Ms Pannek said.
“They have been buoyed by strength in property values and an improved interest rate outlook, with the Reserve Bank cutting the cash rate to 4.10% in February.”
Two other major themes that featured significantly in previous MFAA research were the number of broker clients finding it challenging to meet their mortgage payments, and the level of borrowers who couldn’t refinance because of serviceability requirements.
Many home loan borrowers are still concerned about their ability to meet their mortgage payments. However, the number of brokers who said that more than 10% of their clients are stressed about mortgage repayments has halved over the past 12 months, from 51% to 24%.
“No doubt clients have worked with their brokers to minimise their existing home loan rates, unemployment has remained low, home loan borrowers are adjusting their household budgets and feeling more positive about their ability to make their payments,” said Ms Pannek.
In addition, when asked whether their clients are finding it harder to refinance in the current environment, 42% of brokers said more clients are finding it harder, compared to 83% 12 months ago. Over the same period, there was a 31% increase in brokers reporting that refinancing conditions were about the same.
“Whilst it is clear that significant serviceability barriers still remain for mortgage holders who are wanting to refinance to a better deal, there are signs these are easing somewhat,” Ms Pannek said.
“Whilst the February RBA rate cut has buoyed borrower sentiment, the reality is refinancers are still being assessed at 3% above the mortgage interest rate.
“The outlook for interest rates from many economists is now for more interest cuts and sooner – however the serviceability buffer is still at 3%. There is merit in reassessment of the buffer to assist borrowers to refinance to a better deal.”
The MFAA continues to call for changes to APRA’s serviceability buffer, as outlined in its submission to the Inquiry into the Financial Regulatory Framework and Home Ownership Inquiry in late 2024 – specifically the introduction of a dynamic buffer, which would shift up when interest rates decrease and down when interest rates increase.
Ms Pannek noted that refinancing activity was on the rise. The latest Australian Bureau of Statistics Lending Indicators, covering the December 2024 quarter, showed the number of owner occupier external refinances rose 12% from the September 2024 quarter.
“Our members have also reported a noted uptick in inquiries since the February 2025 RBA cash rate decrease.”
The Member Sentiment Survey also included key insights into broker clients and the source of new and repeat business.
Repeat business remains critical for brokers – with 98% of survey respondents reporting they have returning clients who seek them out for their finance expertise.
However, 95% of those surveyed said they had clients on their books that were using a broker for the first time to refinance, while 97% had first home buyer customers.
“These data points are positive indicators of the growth in the mortgage broking industry and how the majority of Australians seeking a home loan are turning to brokers to help them find the best deal that suits their circumstances,” Ms Pannek said.
The value proposition of brokers in bringing choice and competition to the market, and educating clients about their finances was also evident in the survey:
“Whether it’s refinancing, budgeting strategies, or securing a discount on their home loan, mortgage holders know they can rely on brokers to assist them,” Ms Pannek said.
“This survey provides valuable data for brokers which they can use to help grow their businesses and ensure our industry continues to thrive.”
You can access a copy of the MFAA February 2025 Member Sentiment Survey fact sheet here: Industry research – MFAA | Mortgage and Finance Association of Australia
The February 2025 Member Sentiment Survey was conducted by the Mortgage & Finance Association of Australia (MFAA), the peak body for the mortgage and finance broking industry, representing 15,500 members. Mortgage brokers facilitate more than 75% of all mortgages in Australia. The survey was completed by 321 mortgage brokers nationally in March 2025.
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