Specialist lender to mortgage brokers moves from $3.2 million in private funds to institutional backing one year after its first loan
Broker Capital, a Sydney-based specialist lender to Australian mortgage brokers, has secured a $40 million senior debt facility from a Sydney-based institutional lender to fund the next stage of its loan book growth.
The facility is a significant step up for the business.
When Broker Capital launched in November 2025, it had $3.2 million of private investor funds deployable across debt and equity, no clients on its books, and was run by two people.
At the time, founder Simon Lewis (pictured), who came from TrailBlazer Finance, told MPA the business would move to wholesale funding once it had loans in place and a track record.
Broker Capital lends to mortgage brokers against the trail commission income on their loan books. Brokers can use the funding to grow their business, buy other books, hire staff or restructure, without selling the book itself.
One year after making its first loan, Broker Capital has funded almost 40 brokers, with an average loan size of around $250,000, according to the company.
The lender uses AI to analyse trail books, assessing commission data, loan-level performance and runoff to price and approve loans faster than traditional lenders.
“Mortgage brokers are building highly profitable businesses with recurring trail income, yet most banks and traditional lenders still won’t lend against it,” Lewis said. “In our first year we’ve backed almost 40 brokers to grow faster without giving up equity or selling their book. This facility gives us the capital to back many more brokers, and we’re looking to expand into other types of commission funding, including insurance broker and financial planner commissions.”
Competition for broker funding grows
Broker Capital is not alone in the space.
Alongside heavyweight Trailblazer, earlier this year, Broker Funder launched with Loan Market Group (LMG) becoming the first aggregator to partner with it, citing growing activity around succession and consolidation. Co.Credit is another recent entrant to the space.
Demand is being driven by the channel’s scale. Brokers facilitated a record 81.6% of new residential home loans in the June 2026 quarter, according to Mortgage and Finance Association of Australia (MFAA) market share data compiled by Cotality.
Lewis also hosts the Broker Capital Podcast, where he interviews brokers and business owners about how they grow.
