Best Interests Duty has 'strengthened the trusted relationships brokers have built'
The broker industry has seen significant growth and professionalisation in recent years thanks to the rise of the Best Interests Duty (BID), a landmark report from industry body MFAA has found.
Developed in partnership with Deloitte, the Value of Mortgage and Finance Broking 2025 Report found that the majority (56%) of brokers believe BID has improved trust in the sector.
BID, which was introduced in 2021 following the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, sets out the framework for how brokers must act in the best interests of their clients.
“This crucial piece of research paints a complete picture of the evolving mortgage and finance broking industry and its contribution to the Australian economy,” said MFAA chief executive Anja Pannek (pictured). “It shows that the industry has responded well to a raft of regulatory reforms, in particular the changes arising out of the Banking Royal Commission.”
Pannek said BID “has only strengthened the trusted relationships brokers have built with their clients. We see this through the increasing size of the industry and mortgage broker market share”.
Helping millions
Brokers have also played an essential role in helping borrowers navigate the protracted interest rate cycle and cost-of-living pressures, said Pannek.
“Brokers are helping millions of Australians achieve their goals of owning a home or running a business. It’s clear the value they create for consumers through education and breaking down barriers to access the property market.
“Brokers are also demonstrating value to lenders by working closely with clients, taking the time to get them ‘finance ready’. This can be seen in the way brokers align customers’ needs and objectives with the right lenders, in terms of their offerings, systems and services.”
Per the report, the number of brokers increased to more than 22,000 as of March 2024, a 29% rise since 2018. Brokers now facilitate 75% of all new residential loans, up 18 percentage points from 2017.
Broker industry in numbers
Credit: MFAA/Deloitte
Industry growth has driven greater choice and competition in the market, leading to interest savings for home loan borrowers and increased banking competition, said the report.
Commercial and asset finance have also expanded, with aggregators reporting annual volume growth exceeding 20%. Overall, the broking industry generates $4.1 billion in total economic activity and supports 37,349 jobs.
MFAA and Deloitte surveyed nearly 900 brokers alongside holding interviews with brokers, aggregators and lenders, to compile the findings.
