It’s time to retire the title “mortgage broker”

By Simon Bednar, Finsure Group CEO

The Australian mortgage broking industry has outgrown its own title – ‘mortgage broker’.

When I hear the word ‘broker’, it carries a connotation of a one-off transaction: someone who introduces a borrower to a lender, helps complete the paperwork, and steps away once the loan settles.

That description may have been closer to reality when the industry was in its infancy. It is not the reality today.

Modern mortgage brokers are not simply intermediaries. They are ongoing mortgage advisers who guide clients through some of the most significant financial decisions of their lives. The work has changed. The responsibilities have changed. The expectations have changed. It is time for the language to change as well.

A modern mortgage professional interprets credit policy, compares lending options, structures debt, explains repayment strategies, and help clients understand the trade-offs between fixed and variable rates, offset and redraw, principal-and-interest and interest-only lending.

Many also support clients across personal lending, asset finance, commercial facilities and broader finance needs. They support businesses needing to make strategic financial decisions, particularly SMEs who don’t have access to a wide support network. In many households, the mortgage professional is the first call whenever a major financial decision involves debt.

That is not simply ‘broking’. That is so much more.

The industry is not what it was.

When mortgage broking first emerged in Australia, the barriers to entry were very different. The industry was younger, less regulated, and still proving its place in the financial system. The role was often viewed through the narrow lens of distribution: helping borrowers access lenders outside the traditional branch network.

Today, that characterisation is outdated.

The modern profession operates in an environment shaped by compliance obligations, responsible lending requirements, best interests duty, continuing professional development, lender accreditation, digital systems, customer data protections, and increasingly complex client needs.

The uplift in educational and professional standards has been significant. New entrants are expected to demonstrate a level of technical capability, regulatory understanding and client-care discipline that would have been almost unrecognisable in the early days of the sector.

This matters because titles shape perception. If the community still hears “broker” and thinks “middleman”, then the title is failing to reflect the expertise, obligations and ongoing service that now define the profession.

As our industry continues to evolve, I would endorse a further increase to the educational threshold to reiterate the professionalism and knowledge exhibited by the modern mortgage specialist role.

Consumer expectations have changed.

Australian borrowers have also changed.

Consumers no longer want someone who merely finds a product. They want someone who explains their options, challenges assumptions, simplifies complexity and remains available after settlement. They expect guidance before, during and after the transaction.

That expectation has only intensified as the lending environment has become more complex. Interest rate movements, serviceability buffers, changing credit policies, cost-of-living pressures and housing affordability challenges have made quality guidance more important than ever.

For many customers, the loan itself is only one part of the conversation. The bigger questions are: Can I afford this? What happens if rates move again? Should I refinance? How should I structure my lending? What are the risks? How does this decision affect my next one?

These are advisory conversations and require judgement, experience and a deep understanding of the client’s circumstances.

The relationship does not end at settlement.

One of the strongest arguments for adopting the term “mortgage adviser” is the ongoing nature of the relationship.

A good mortgage professional does not disappear once the loan settles. They stay with the client through rate cycles, refinancing decisions, restructures, property upgrades, investment purchases, business transitions and life changes.

They are there when a couple buys their first home, when that family needs more space, when a business owner needs finance for equipment, when an investor reviews their portfolio, and when adult children of long-term clients begin their own property journey.

Increasingly, mortgage professionals are building multi-generational relationships based on trust, history and deep knowledge of a family’s financial position.

This is also why trail commission is so often misunderstood outside the industry. Trail is not simply a legacy payment attached to a completed transaction. It’s reflective of an ongoing service relationship. It recognises that the professional remains connected to the client, available to review the loan, respond to changing circumstances, and help ensure the lending structure continues to suit the client’s needs.

A vital part of Australia’s financial system.

The scale of the broker channel also demands a more mature conversation about language.

Mortgage brokers are now responsible for more than three-quarters of all new residential home loans in Australia, with MFAA-commissioned Cotality data showing broker market share reached 76.8 per cent in the March 2025 quarter. That is not a fringe distribution channel. It is a central part of Australia’s home lending system.

When nearly eight in ten new residential loans flow through mortgage brokers, the role is not merely commercial. It is social and economic.

Mortgage professionals help borrowers access choice. They support competition by giving consumers visibility across lenders. They help people understand complex financial commitments. They often act as translators between households and institutions.

Why “adviser” matters.

Some will argue that “broker” is a familiar term and that changing language is unnecessary. I disagree. The term “broker” describes access to products. The term “adviser” describes guidance, responsibility and an ongoing relationship.

This is not about overstating the role or blurring regulatory boundaries. It is about using language that more accurately reflects the work being done. Mortgage professionals provide credit assistance, not holistic financial planning. But within their field of expertise, they advise clients every day on decisions that have long-term financial consequences.

Other markets have already recognised this shift. In New Zealand, the term “mortgage adviser” is widely used and better reflects the guidance provided to borrowers across the life of a loan. Australia should be prepared to have the same conversation.