Supply Constraints and Market Competition
Brokers are contending with limited housing supply amid slow planning and environmental approvals, which continue to restrict listings and purchasing activity. In commercial property, heightened competition among developers is generating both risk and opportunity, especially for brokers with clients eager to explore alternative asset classes.
Rising Loan Sizes and Market Opportunities
Mortgage volumes are at unprecedented levels, with the average loan for owner-occupiers now between $666,000 and $674,000. The resilience in demand, even with slowing price growth and elevated rates, indicates sustained opportunity among higher-income buyers. At the same time, first-home buyers remain hampered by affordability constraints, with smaller average loan amounts highlighting the ongoing need for thoughtful client support and guidance.
Policy Changes Bolster Broker Activity
Recent federal housing initiatives, including lower deposit requirements and new funding for housing construction, have created optimism among mortgage brokers. A significant proportion expect these changes to boost business opportunities. Those staying up to date on new policies can more confidently guide a broader client base and assist buyers facing affordability pressures and eligibility complexities.
Tax Reform and Investor Sentiment
Potential reforms to negative gearing and capital gains tax for multi-property investors introduce fresh challenges. While owner-occupiers remain active, investor demand may cool if these policies advance, particularly for brokers with a business focus on investment lending. This environment underscores the benefits of nurturing a diverse client base and being equipped for shifting investor behaviour.
Rental Crisis and New Service Models
Escalating rents, which have surged well beyond income growth in recent years, are fuelling demand for solutions like outsourced rental inspections. Brokers who can offer referral pathways or new advisory services in this space may develop valuable networks, particularly among renters transitioning toward ownership or property investors seeking insights into the rental market.
Technology and the Changing Role of Brokers
Digital lending platforms and AI-driven solutions are shifting customer preferences toward automation and self-service, which could threaten traditional broker roles. Brokers best positioned for ongoing success will be those who embrace technology and pair efficiency with deep expertise, focusing on tailored advice and client trust in a more commoditised environment.
Summary
Australian mortgage brokers face high loan volumes and new opportunities through government action, but must navigate the complexity of new tax proposals, supply challenges, and rapid tech-driven change. Success in this evolving market will rely on adaptability, continuous learning, and a focus on client value across an increasingly diverse and dynamic property sector.
