According to the latest MFAA Member Sentiment Survey, over 80% of mortgage brokers say their clients are feeling positive or neutral about their financial outlook — a significant shift compared to 12 months ago.
While cost-of-living pressures remain a concern, borrower sentiment appears to be turning a corner. Factors contributing to this shift include easing interest rates, strong employment figures, and resilient equity positions. Notably, the proportion of clients reportedly stressed about their repayments has dropped sharply — with only 24% of brokers saying more than 10% of their clients are experiencing mortgage stress, down from 51% a year ago.
Serviceability is also improving. The number of brokers saying it’s harder for clients to refinance has halved since early 2024, and more refinancers are turning to brokers for the first time — with 95% of brokers reporting new-to-industry clients and 98% helping them secure a better rate.
As MFAA CEO Anja Pannek said, these trends reflect “glimmers of cautious optimism in the system,” driven by policy changes, lower interest rates, and broker support. “They have educated their clients about being financially fit… and helped them refinance to a better product.”
This shift in sentiment is echoed by the RBA’s Financial Stability Review, which found arrears levels have dropped, and nearly all mortgagors are sitting on equity buffers well above their loan balances.
The outlook may further improve depending on the outcome of the May federal election, with potential regulatory adjustments to serviceability buffers on the table.
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