Broker Market Share Hits 80% — What It Means for Borrowers Seeking Non-Bank Finance

Broker Market Share Hits 80% — What It Means for Borrowers Seeking Non-Bank Solutions

Australian mortgage brokers now settle more than 80% of all new home loans — a record milestone confirmed by industry data released this week and highlighted by The Adviser and MFAA. For borrowers navigating a complex lending environment, this shift fundamentally changes how you should approach finding the right loan.

What the 80% Milestone Means

For most of the past decade, broker market share hovered around 60–70%. The crossing of the 80% threshold signals a structural change: most Australian borrowers are no longer walking into bank branches to arrange their mortgages. They are working with independent brokers who can access multiple lenders — including non-bank lenders.

This matters because non-bank lenders are not typically accessible directly from a bank branch. Their products — Alt Doc loans, bridging finance, commercial loans — require a broker intermediary who understands the product set and how to position an application correctly.

Why Brokers Are More Important for Non-Bank Borrowers

For borrowers whose income or employment situation does not fit major bank criteria, broker access is not just convenient — it is often the only pathway to finance.

Consider the typical MPFG borrower profile:

• Self-employed for 1–3 years: Tax returns may not yet reflect stabilised income; BAS statements tell a more accurate story
• Chinese-Australian small business owner: May have complex income structures across multiple entities
• New migrant with PR status: Employment history in Australia may be shorter than standard bank requirements
• Property investor with multiple holdings: Serviceability calculations become complex; a specialist broker navigates this efficiently

In each case, the broker does not simply fill in forms — they select the right lender, structure the application correctly, and present the income evidence in a way that matches the lender's assessment criteria.

The RBA Setting and Its Effect on Broker Activity

The RBA's cash rate stands at 4.35% (effective May 2026), with the next decision due on 16 June 2026. Market expectations are divided on whether the Bank will cut, hold, or make any change — and this uncertainty is driving borrowers to brokers in greater numbers.

When rates are uncertain, borrowers want professional guidance. When banks are tightening their standards, borrowers need brokers who know which lenders have capacity and appetite for their profile.

According to ABS data, GDP grew 0.3% in the March 2026 quarter — a modest figure that reinforces the case for borrowers seeking flexible financing solutions rather than waiting for ideal economic conditions.

How to Find the Right Broker for a Non-Bank Loan

Not all brokers are equal when it comes to non-bank lending. Key questions to ask:

1. Do you write non-bank loans regularly? Some brokers focus entirely on the major four banks. You need someone with active non-bank panel accreditations.
2. Have you written Alt Doc loans? Alt Doc is a specialist product. Experience with the documentation requirements matters.
3. Can you access commercial and bridging products? If you have business property or require short-term finance, ensure your broker has the relevant lender relationships.

MPFG Capital works with brokers who specialise in the self-employed, investor, and migrant borrower segments. If your broker is not familiar with non-bank Alt Doc or bridging products, ask them to refer your case or seek a second opinion.

Frequently Asked Questions

Do I have to use a broker to access MPFG Capital?

MPFG Capital primarily works through accredited mortgage brokers. Speaking to a broker who has MPFG on their panel is the recommended pathway for most borrowers.

Are broker fees extra on top of my loan?

In Australia, mortgage brokers are typically paid by the lender, not the borrower. There is generally no upfront broker fee for residential loan applications.

Can a broker help if I've already been declined by a major bank?

Yes. A broker with non-bank panel access can assess your situation and identify lenders whose criteria you meet — even after a major bank decline.

This article is general financial information only. It does not constitute financial advice. Loan outcomes depend on individual circumstances.