The Australian mortgage broking industry is at a turning point, with brokers now responsible for 74.6% of all new residential home loans settled in the September 2024 quarter, according to MFAA data.

This growing share reflects the trust borrowers place in brokers, but it also comes with a heightened set of expectations. Clients expect more tailored advice, the use of AI-driven technology is increasing, compliance requirements are tightening, and areas such as commercial lending and green finance are creating fresh opportunities. Staying informed is critical in this environment, and education and professional development are essential for brokers to keep up.

Six leading organisations – the MFAA, the FBAA, Lendi Group, Thinktank, NAB and SFG – offer their perspectives on the year ahead, providing brokers with a clear picture of the key areas they should focus on to remain competitive.

The top skills brokers need

Success in 2025 will require more than just staying on top of lending policies. Brokers are being urged to expand their expertise, whether that means embracing new technologies, refining their communication skills or moving into new lending markets.

Dan Walsh, MFAA executive for professional development and member engagement, highlights skills diversification as a top priority this year.

“We see a huge opportunity for brokers to provide additional value to clients and enhance revenue opportunities by diversifying into other lending areas, including commercial and business finance, asset and equipment and SMSF,” Walsh says.

“The latest MFAA Industry Intelligence Service report, covering October 2023 to March 2024, showed a 15.19% increase in the number of mortgage brokers writing commercial loans, while the total value of commercial loans reached its highest value of $20.31 billion.”

Walsh notes that cybersecurity is also a “major priority”, and brokers need to be proactive in staying ahead of requirements.

“Additionally, it’ll be important to use customer engagement in the AI era to support lead generation, continue efforts to support an inclusive industry, and assist our members to have a balanced approach to managing their wellbeing whilst running a small business,” he explains.

Technology is a hot topic this year, as AI-driven tools are playing an increasingly large role in the broking industry. New technology is making it easier to process loans, analyse client data and manage workflows, and Lendi Group general manager – network development Aaron Hockey says digital literacy is now “paramount” for every broker.

“Mastering CRMs, automation tools, and staying ahead of compliance and regulatory updates are essential,” Hockey says. “Brokers will also need to develop data analytics capabilities and the ability to leverage AI tools effectively.”

Still, there’s no doubt that broking remains a people business. For Blake Buchanan, general manager at Specialist Finance Group, ongoing investment into ‘people skills’ like communication, relationship building and networking remains a cornerstone of a broker’s skill set. This is particularly important as the next generation starts to eye homeownership and make decisions around who they want to work with.

“Over time, we see changes in how different generations want to interact with people, or what’s important to them in a relationship,” Buchanan says.

“This means brokers should pay attention to their clients’ language and learn from them and also ensure that they are reviewing their own approach, communications and engagement and how well that suits the wants and needs of their clients.”

NAB’s executive commercial broker and equipment finance sales, Chris Thomas, emphasises the importance of balancing soft skills with technical knowledge. He notes that brokers need to support customers through a wide range of challenges, including growth, consolidation and change.

“The role brokers can play as the customer’s debt adviser can go beyond just the lending. No matter the economic environment, SMEs are continuing to find opportunities, and in many instances the right lending solution can be the key to unlock success,” Thomas says.

“This raises the stakes on the impact a broker has on the lives of their customers and their ability to thrive by investing in what matters most to them.”

Zoning in on AI

Artificial intelligence is one of the biggest trends reshaping the mortgage broking landscape, offering significant opportunities for brokers to boost efficiency. Industry leaders agree that brokers must embrace digital advancements but also remain vigilant about compliance and client engagement.

Hockey highlights both the potential and the challenges posed by AI. “AI will undoubtedly enhance broker education by providing more accessible resources, but it will also create a pressing need for upskilling,” he explains.

“As AI and digital platforms become integral to daily operations like streamlining administrative tasks, analysing client data and improving customer interactions, brokers will need to develop digital literacy, data analytics capabilities and the ability to leverage AI tools effectively.”

“This dual impact will raise the bar for brokers, requiring them to adapt to a tech-driven industry, while opening up new opportunities to deliver exceptional customer experiences.”

Buchanan raises concerns about compliance, noting that brokers need to protect themselves as AI systems evolve.

“While AI undeniably offers opportunities to create efficiencies in processing and certain forms of communication, it also presents risks to brokers when engaging with clients and offering advice,” he says.

“Brokers who integrate AI into their business must ensure they understand what data AI systems have access to and where that data is being stored. This is critical to protect themselves and to remain compliant with licensing requirements.”

Meanwhile, Thinktank’s head of partnerships and distribution, Belinda Wright, points out that AI can empower brokers to upskill and expand their services.

“The rise of AI and digital platforms is set to revolutionise broker
education and development, making training more accessible and tailored than ever before,” she explains. “Embracing these advancements will enable brokers to become more comfortable and proficient in leveraging AI and digital tools.”

“Far from being a threat, AI has the potential to streamline processes, enhance efficiency and make brokers’ jobs faster and easier.”

Finally, the FBAA’s chief development officer, Joanna James, emphasises that technology, including AI, must be integrated strategically.

“Technology knowledge, understanding AI and other tech advancements for efficiency alongside safe practices around data, and general IT security is fast becoming the area that will set brokers apart to operate with supremacy,” she says.

All in all, mastering both AI-driven technology and client-centric skills will be crucial to staying competitive in the years ahead.

Future-proofing your business in 2025

For brokers, finding time to work on their business is often one of the most challenging tasks. However, with an increasingly complex and highly regulated lending environment, business development is an area that brokers can’t afford to ignore.

The brokers who will thrive in 2025 and beyond are those who take the time to develop their business skills, keep up with market shifts and expand into new areas of lending. According to Wright, evaluating your current strengths and weaknesses is a great starting point.

“If you’re highly proficient in residential home loans, consider exploring adjacent markets like equipment finance, commercial lending or SMSF loans,” she says. “Similarly, if you’ve focused primarily on PAYG clients, expanding into self-employed borrowers could open up new opportunities.

“Then, incorporate learning into your business plan. Whether it’s reading industry-related books, listening to podcasts, attending workshops or participating in formal training, make education a non-negotiable part of your routine.”

When it comes to diversifying and expanding, Thomas says the opportunities are huge. NAB’s Market Megatrends 2024: Navigating the Future report identified six key themes shaping Australia’s broking environment. These include housing accessibility, intergenerational wealth transfer, businesses investing for growth and decarbonisation, as well as property investment, advances in technology and an increasing need for cybersecurity.

“Each of these areas presents commercial brokers with opportunities to work with business customers,” Thomas says. “For example, commercial brokers working with developers can help to unlock access to funding that supports an increase in housing supply.”

Thomas adds that opportunities will also increasingly arise for brokers to help customers navigate the transfer of wealth between generations.

“Over the next 20 years, an estimated $5.4 trillion will change hands, and this will have a significant impact on Australia’s 2.7 million small businesses as well as property markets,” he explains. “Brokers are well positioned to work with other financial professionals to help business customers to navigate the wealth transfer process.”

Ultimately, broker market share is growing – and according to James, investing in your business is crucial to keeping this trend going. Borrowers have come to expect simplicity driven by technology, and if brokers can’t provide that, they’ll turn directly to the lenders.

James notes that diversification will also be key for brokers this year, particularly those who have focused exclusively on residential lending.

“Business knowledge – particularly marketing, lead generation, HR management and business best practices – is vital for operating successfully,” James says.

“As the percentage of mortgages written via brokers rises, there’s a clear opportunity for brokers to diversify into commercial and asset opportunities. This is why [the FBAA has] developed our commercial education pathway, which offers a targeted approach to support broker needs as they look to invest in themselves and their businesses.”

Key tips for the year ahead

As the economic climate remains uncertain, brokers will be looking to maintain a strong pipeline of leads. In this environment, it’s easy to let learning and development take a back seat. However, the message from industry leaders is clear – take control of your learning; don’t wait for change to force your hand.​

Walsh notes that 2025 is set to be a dynamic year, particularly with more potential rate cuts around the corner.​

“Education is the way to stay competitive,” he says. “In 2025, [the MFAA will] be running 60 events across Australia, including member forums, roadshows, online courses and webinars. Members can also read relevant articles, get involved in mentoring, deliver workshops and study to gain CPD points. We encourage brokers to take advantage of these opportunities.”

“Keeping up to date with changing trends – this is essential to the broking industry’s ability to self-regulate.”

Walsh adds that in an uncertain economic environment, clients need to know who they can trust – and being an MFAA-accredited broker goes a long way, thanks to the association’s high education standards, including an industry-first annual compliance refresher.

“As the world becomes more digitised and personalised, the role of trusted adviser is more important than ever,” Walsh says. “Brokers need to understand their business goals and then the activities required to achieve those goals.:

“Then identify any knowledge or skill gaps that you need to fill to conduct your business activities effectively. Look at the MFAA online resources, courses, events and webinars, or chat to a state manager for further guidance.”

Hockey says his top tip is to stay curious and open to change. Since most clients choose their broker based on trust and comfort level, developing skills like emotional intelligence, active listening and relationship building can’t be overlooked. Hockey encourages brokers to balance technical upskilling with investment into soft skills.

“Focus on areas that align with both industry trends and personal career goals, like mastering AI, staying informed about regulatory updates, and honing sales and social strategies,” he says.

“And don’t underestimate the power of mentorship or peer networks. These are invaluable for sharing knowledge and best practices, especially around emerging technologies like AI.”

When it comes to CPD, SFG has a huge year planned, with over 60 scheduled events in a wide range of formats. Buchanan advises setting yearly goals and targets, and notes that compliance is set to be a particularly “big-ticket item” in 2025.

“Simply put, brokers need to invest in themselves,” Buchanan says. “The old adage of remaining adaptable is most relevant to our model, and it’s an absolute necessity that you are aware of the information relevant to our roles.”

For NAB, the focus this year is on supporting technical skills, particularly in the commercial space. Its Commercial Lending workshops aim to enhance brokers’ financial risk and credit assessment skills. Brokers cover topics such as examining business cash flow statements, assessing repayment ability and presenting financial analysis commentary to support credit submissions.

Thomas notes that brokers need a strong foundation of knowledge across multiple industries to be successful in commercial lending, as well as the ability to quickly respond to changing circumstances.

“Commercial brokers need to be able to holistically understand their customers’ businesses no matter the industry, so they can provide strategic guidance tailored to their customers’ needs,” Thomas explains.

“Brokers also need to keep up to date with changes to products and policies so that solutions can be tailored to meet these needs.”

“Commercial clients typically seek new or variations to their finance around three times a year, reflecting how circumstances can dramatically change quickly. To this end, broker responsiveness is critical as business customers expect rapid turnaround times.”

To get the most out of learning, James advises brokers to choose a method that works best for them. This means taking professional development goals, business needs, time and learning preferences into account.

For the FBAA, this has translated into a range of flexible content designed to help brokers invest in their skills, particularly in key areas like business and technology.

“In addition to the 25-hour standard we set, we see our role as providing content that’s different to what’s ordinarily available,” James says.

“This year we will continue to deliver immersive-style learning sessions, such as our introduction to the newly released CFB program, or short sessions directly from our new diploma with a key focus on broker business skills.”

Finally, Wright highlights the importance of constantly pursuing ongoing skills development, whether you’re a new broker or someone who has been in the industry for many years.

“Ultimately, staying relevant in 2025 and beyond requires brokers to embrace continuous education, strategically expand their skill set and maintain a client-first mindset,” she concludes.

“This proactive approach to learning and development positions brokers as trusted experts and leaders within the industry.”

Article originally published on MPA on 18 Feb 2025