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As household budgets tighten and interest rates remain elevated, understanding how everyday Australians gain access to home loans has never been more critical. The FBAA’s “Consumer Access to Mortgages 2025” report—produced in partnership with Agile Market Intelligence—offers a comprehensive look into mortgage access barriers, broker trust, and evolving borrower preferences.
Insights from the FBAA Report
Link to the report:
consumer access to mortgages 2025.pdf
Borrower Trust in Mortgage Brokers Soars
Trust in brokers remains rock-solid:
- 82% of borrowers report high levels of trust in mortgage brokers; 39% say they “completely trust” them
- By comparison, lender representatives enjoy significantly lower trust levels.
- Notably, over a third of consumers indicated they’d be more likely to use a broker after learning about the Best Interests Duty—highlighting its impact on consumer confidence
This trust is echoed in market share data:
- Brokers facilitated nearly 77% of all new residential home loans in Q1 2025
Working Through Mortgage Stress and Rising Costs
Despite strong trust, many are feeling the squeeze:
- 34% of mortgage holders are in stress, paying more than 30% of household income toward their loan
- Additionally, approximately 60% of fixed-rate borrowers are due to transition to variable rates in the next year—posing fresh financial stress risks
Amid this pressure, 16% have already refinanced, and nearly half are actively considering it—showing brokers play a crucial role connecting borrowers with relief options
Who Is Entering the Mortgage Market?
About 19% of Australians secured or refinanced a mortgage in the past 12 months—a small but notable uptick in activity
Meanwhile, ABS data for Q2 2025 reveals:
- A 1.9% rise in new dwelling loan commitments and 2% in value, driven especially by investor activity.
- First-home buyer loan value surged 5.7%, while investor loan volumes climbed 3.5% Australian Bureau of Statistics.
Barriers Remain: Borrowing Capacity and Serviceability Buffers
A critical hurdle: the APRA’s 3% serviceability buffer, which significantly impacts borrowing power. In NSW, borrowers must now prove they can afford $1,957/month more—and even in QLD, this buffer translates to over $1,400 required monthly in disposable income The Courier-Mail.
However, change may be on the cards:
New FBAA research suggests that reducing this buffer to 2.5% could unlock an additional $276 billion in borrowing power, benefiting 270,000+ Australians, including first-home buyers aged 25–34
Why This Matters
- For Borrowers: Understanding access hurdles, trust dynamics, and financial stress helps you navigate assistance programs and refinancing options.
- For Brokers and Lenders: Providing transparency, access, and trusted guidance is more important than ever.
- For Policymakers: These findings highlight the real impact of regulation—buffers and economic backing must balance prudence with opportunity.
Final Thoughts
The FBAA’s insights show that amid rising costs, Australians rely deeply on trusted intermediaries to access finance. Mortgage brokers remain the backbone of mortgage accessibility—delivering clarity, choice, and compassion.
If you’re wondering how these trends impact your borrowing power—or how to refinance, consolidate, or break into the market—feel free to reach out. Let’s navigate today’s lending landscape together.
Sources:
- Consumer Access to Mortgages 2025 (FBAA)
- Lending Indicators Q2 2025 (ABS) Australian Bureau of Statistics
- APRA Buffer Impact (Mozo/Courier Mail) The Courier-Mail
- Serviceability Buffer Benefits (FBAA) Media Statements
