Broker Funder launches with LMG as its first aggregator partner, offering loans up to $500,000
A new specialist commercial finance provider, Broker Funder, has entered the Australian market with a lending facility that allows mortgage brokers to access capital secured against their trail income.
The platform, founded by Angus Young (pictured top) in collaboration with Nick Young — founder of Trail Homes — was established in response to demand for broker-specific capital solutions.
"Broker Funder's primary focus is supporting the next phase of industry growth through a 'self-funded' model that enables brokers to leverage their trail books to fund acquisitions, business expansion, staffing, working capital, debt consolidation, refinance tax liabilities, and so forth," said Angus Young, founder and chief executive of Broker Funder. "This structure provides brokers with the dual benefit of a capital injection without encumbering other assets."
The launch comes as the broker channel reaches record scale. Brokers facilitated 76.7% of all new residential home loans in the December 2025 quarter, settling $142.20 billion — the highest amount recorded in any December quarter, according to the MFAA. The growth in broker activity has increased the value of trail books as business assets, underpinning demand for financing solutions built around recurring trail income.
The facility offers loans between $50,000 and $500,000, secured solely against trail income. Loans are assessed at a two times annualised revenue multiple, with a maximum loan-to-value ratio of 70%. Funding is structured as principal and interest over one to five years through a low-documentation process, with approvals and settlement often completed within one week. Early repayments are permitted without significant penalties.
The product is positioned as an alternative to traditional secured commercial finance, which typically requires property as collateral, and to unsecured options that generally attract higher interest rates.
One intended use case is trail book acquisitions. Young noted that the loan repayments can be structured to be funded by the trail income generated from the book being purchased.
"The model can be structured using the trail from the book being purchased to fund the loan repayments, the 'loan pays for itself'," Young said. "For example, a broker with $10,000 in monthly trail looking to purchase another $10,000 per month trail book may be able to access upwards of $335,000 in funding to facilitate the purchase. With indicative P&I repayments of approximately $8,000 per month over a five-year term, this means the new acquisition is not only paid off by end of the loan term, but potentially the repayments are completely funded by the new trail book being acquired."
Loan Market Group (LMG) has become the first aggregator to partner with Broker Funder, making the facility available to its members. LMG cited growing activity around succession and consolidation as the backdrop for the partnership.
"Broker Funder gives brokers more flexibility at a time when many are planning for long-term growth," said Ewen Stafford (pictured right), executive director and chief executive officer at LMG. "Across LMG and the wider industry, we're seeing strong momentum around succession and consolidation.
"Established brokers are exploring transition pathways, while a new generation of brokers is looking to acquire and grow existing businesses. This is driving demand for solutions that enable brokers to access funding and grow sustainably."
Young also flagged potential tax and cash flow considerations for borrowers. "The facility may also provide attractive tax and cash flow advantages, particularly where the funding is used for acquisitions or growth initiatives – so it's worthwhile discussing in collaboration with an accountant," he said.
"As the mortgage broking industry continues to mature, access to tailored, purpose-built capital solutions will become increasingly important. We're dedicated to supporting this next phase of industry evolution by enabling brokers to efficiently access and leverage the value of their recurring income streams."
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
