Borrowers Seek Brokers for Expertise and Access: FBAA Report
Recent research from the Finance Brokers Association of Australasia (FBAA) and CoreData highlights key trends indicating why Australian borrowers are increasingly opting for brokers. This study, conducted among 1,007 investors and homeowners in late 2025 and early 2026, sheds light on the evolving dynamics within the lending landscape.
Key Findings from the FBAA Report
The appeal of brokers is rooted in their market expertise and efficiency. Significant findings from the research include:
- 53% of respondents consider “experience and knowledge of the market” a primary benefit, up from 50%.
- 43% value “convenience and savings,” an increase from 38%.
- 57% approached mortgage brokers for market insights, a rise from 50%.
- 47% sought finance brokers for convenience and time-saving, compared to 37% previously.
Changing Perspectives on Broker Engagement
Interestingly, the focus is shifting from merely securing competitive rates. The preference for mortgage brokers for access to diverse lenders and products decreased from 48% to 42%. However, this figure for finance brokers increased from 34% to 40%.
High Satisfaction Levels Persist
Customer satisfaction with brokers remains robust. Key metrics include:
- Communication satisfaction rose dramatically from 88% to 96%.
- Finance brokers achieved a 98% favorability rating in communication versus 94% for mortgage brokers.
- 93% of clients felt finance brokers acted in their best interests, compared to 87% for mortgage brokers.
Notably, issues experienced by clients decreased, with complaints dropping from 13% to 9%. Borrowers generally trust brokers more than lenders, indicating a strong confidence in the broking profession.
Shifting Trust Dynamics
Trust in mortgage brokers increased from 71% to 74%, while trust in finance brokers saw a slight decline from 71% to 70%. Respondents who used a broker recently exhibited enhanced trust levels, suggesting positive ongoing engagements.
Emerging Concerns Among Borrowers
However, the study also revealed evolving concerns. Key issues reported include:
- 39% of complaints related to communication problems, an increase from 32%.
- Payment issues nearly doubled, rising from 8% to 15%.
- Concerns about inadequate advice increased from 11% to 13%.
A significant challenge for borrowers is finding brokers with the necessary experience and market knowledge, which rose from 31% to 39%. For finance brokers, this concern surged from 29% to 44%.
Loyalty and Referrals Remain Strong
Despite new digital tools, borrowers continue viewing brokers as essential to navigate the market. The likelihood of using the same broker again increased slightly from 75% to 76%. Notably, personal referrals account for 60% of new leads.
Demographic Insights
The research identified gender differences in referral sources. Women are more likely (41%) to find brokers through family and friends compared to men (29%).
Shift Toward DIY and Alternative Routes
Alternative pathways are emerging, with 46% of consumers preferring to conduct their own research, up from 40%. Additionally, direct approaches to banks or credit unions increased from 33% to 37%.
Interest in government programs, such as the Help to Buy scheme, also rose sharply, increasing from 17% to 25% following recent policy announcements by the federal government.
The FBAA report provides crucial insights into the evolving relationship between borrowers and brokers, emphasizing the importance of expertise and trust in shaping the lending experience.
