According to the Consumer Access to Mortgages 2025 report, produced in partnership with the Finance Brokers Association of Australia (FBAA), nearly 60 per cent of borrowers will roll off fixed-rate loans in the next 12 months, potentially increasing financial pressure.
The report reveals a significant contrast between financial strain and consumer confidence in brokers.
While mortgage stress is defined as repayments exceeding 30 per cent of household income, trust in mortgage brokers far outpaces that in bank staff, with 39 per cent of borrowers expressing “complete trust” in their broker compared to just 20 per cent for bank employees.
First-home buyers are particularly reliant on broker services, with 43 per cent of future first-home buyers planning to use a broker when entering the market.
“While brokers remain the preferred channel for many, shifting economic conditions and digital disruption are reshaping how borrowers think about their next home loan,” FBAA Managing Director Peter White AM said.
The impending fixed-rate expiries present both challenges and opportunities in the property market.
The report indicates that 57 per cent of mortgage holders will transition from fixed to variable loans within the year, with many facing significant increases in repayment amounts.
Despite financial pressures, refinancing activity is increasing.
Sixteen per cent of borrowers have already refinanced their loans, while nearly half are actively considering this option to manage their financial situation the report said.
For agents, understanding the nuanced relationship between financial pressure and property decisions is becoming increasingly important.
The report found that many households experiencing mortgage stress are still considering property investments or strategic moves rather than completely withdrawing from the market.
There remains a significant knowledge gap about broker services, with 40 per cent of consumers not fully understanding what mortgage brokers do, and nearly half incorrectly believing they will be charged fees for broker services the report said.
This presents an educational opportunity for real estate professionals to provide value by clarifying the role of brokers and introducing trusted financial partners to their clients.
The report found that as interest rates remain elevated and economic pressures continue, the relationship between financial services and real estate is becoming increasingly intertwined, with trust becoming a critical factor in consumer decision-making.
