16,000 Brokers, One Borrower Pool

Key takeaways

• Broker share of new residential lending reached 81.0% in the March 2026 quarter (MFAA).
• Above roughly three-quarters share, the channel cannot grow much further as a channel.
• More than 16,000 brokers compete for essentially the same borrower pool.
• Differentiation is now a distribution strategy, not a branding exercise.

Why does record market share create a problem?

For two decades the broker growth story was simple: take share from bank branches. Every year a larger slice of borrowers chose a broker over walking into a branch, and any competent broker could grow simply by being present.

At 81.0% of new residential loans, that engine has largely run its course. The remaining direct-to-bank share is smaller than the broker channel's own annual growth ambitions, and it is the least mobile part of the market - existing bank customers with an established relationship.

So the growth question changed. It used to be "how do I reach borrowers who do not use brokers?" It is now "why me rather than the other 16,000?"

What does differentiation actually mean here?

Not a tagline. A position is only real if it changes who calls you and what they expect. The practical test: could a referral partner describe what you specialise in, in one sentence, without looking at your website?

The defensible positions all share one property: they take real work to acquire. Anything a competitor can copy by editing their homepage was never a position.

How narrow is too narrow?

Narrow enough that you are the obvious answer, broad enough that the market sustains your volume target. Work backwards from the number of settlements you need, not forwards from how interesting the niche is.

A useful sanity check is whether the niche has a natural referrer. Self-employed borrowers have accountants. SMSF borrowers have advisers and auditors. Divorce lending has family lawyers. A niche with an obvious professional gatekeeper gives you a distribution channel as well as a position - which is the actual point.

And you are not required to refuse other business. A position governs what you are known for and where you invest; it does not stop you writing a straightforward PAYG refinance for a friend.

Frequently asked questions

What share of home loans do brokers write in Australia?

Brokers wrote 81.0% of new residential home loans in the March 2026 quarter, a record according to MFAA quarterly reporting. Figures are updated quarterly and move by a percentage point or two between releases.

How many mortgage brokers are there in Australia?

More than 16,000 by common industry counts, competing for essentially the same borrower pool. The precise number varies by whether you count accredited brokers, active writers, or credit representatives.

Does specialising mean turning away business?

No. Specialisation determines what you are known for, where you spend marketing effort, and which referral partners send you work. You can still write loans outside the niche - you just do not build your acquisition strategy around them.

Which niches are least contested?

Generally those with a genuine skill or knowledge barrier - SMSF lending, complex self-employed structures, expat and non-resident income, and commercial or asset finance as a second revenue line. Barriers to entry are what keep a niche from becoming crowded.

Related reading

• Broker Market Share Hits 81%: What It Means for Borrowers
• Picking a Broker Niche: Profitable Specialisations
• Real Estate Agent and Accountant Referral Partnerships

Sources

• Quarterly mortgage broker market share report, December 2025 quarter — MFAA
• Lending indicators — Australian Bureau of Statistics