The Industry Is Consolidating — Are You Positioned to Grow?
The Australian mortgage broking industry is in the middle of a significant structural shift. After years of steady growth in broker numbers and trail book values, 2026 is shaping up as the year of consolidation — and the brokers who understand how to leverage their existing assets are the ones coming out ahead. Especially now market share is getting abour 75%.
At the centre of this shift is a financing tool that, until recently, was largely underutilised: the trail book loan. Rather than requiring property as security or forcing brokers to liquidate their most valuable income-generating assets, trail book loans allow mortgage brokers to borrow directly against their trail commission income — unlocking capital to fund expansion, acquisitions, and business development without sacrificing ownership.
And demand is surging.
“Australian Business Credit have seen a massive increase in enquiry for funding since the beginning of 2026, ranging from $150,000 funding to expand businesses right through to $5 million for major acquisitions,” said Doug Daniell, Partner at Australian Business Credit.
The Rise of the “Super” Sub-Aggregator
One of the most significant trends accelerating trail book loan uptake is the emergence of what industry insiders are calling “Super” Sub-aggregators — larger, well-capitalised broker groups that are actively consolidating smaller brokerages and individual trail books under a single, unified business structure.
These Super Sub-aggregators aren’t simply growing their loan books organically. They are strategically acquiring:
- Individual mortgage broker client bases
- Established trail books from brokers approaching retirement
- Smaller brokerages looking for an exit pathway
- Referral networks and established client relationships
The value proposition is compelling. A well-run brokerage with $50,000 to $100,000+ per month in trail income represents a significant, recurring, and relatively predictable asset. When aggregated across multiple acquisitions, the combined trail income creates a powerful financial foundation — and increasingly, that combined trail book is being used as the collateral to fund further acquisitions.
Using the Combined Trail Book as Acquisition Collateral
This is where the model becomes genuinely powerful — and where traditional bank lending has consistently failed to keep pace.
Mainstream lenders struggle to value commission-based income streams. They default to requiring residential property as security, which either limits a broker’s borrowing capacity or forces them to put personal assets at risk. For brokers looking to make significant business acquisitions, this has historically been a major barrier to growth.
Specialist lenders like Australian Business Credit have developed a fundamentally different approach. They assess the combined trail income of the borrowing entity — including newly acquired books — as the primary security for lending. This means:
A broker or Sub-aggregator with a $200,000/month combined trail book can borrow substantially more than they could on their own book alone.
The mechanics work like this:
- Existing trail book establishes the borrower’s base income and serviceability
- Target acquisition is assessed for trail book quality, longevity, and income stability
- Combined trail income is used to support the total lending requirement
- Funds are released to complete the acquisition — without selling either book
This circular model — using trail income to acquire more trail income — is precisely what is driving the emergence of Super Sub-aggregators in the current market.
Why 2026 Is the Year Brokers Are Acting
Several converging factors have made 2026 the standout year for trail book loan activity:
1. An Ageing Cohort of Established Brokers
A significant portion of Australia’s mortgage broking population built their businesses during the boom years of the 1990s and 2000s. Many of these brokers are now in their late 50s and 60s, with substantial trail books but limited succession planning. Their books represent genuine acquisition opportunities for growth-oriented operators.
2. Rising Trail Book Valuations
Trail book multiples have increased meaningfully over the past three years, driven by sustained demand and a recognition that diversified, quality trail income is a genuinely defensible asset. For buyers, this means acting sooner rather than later.
3. Market Confidence Post-Rate Cycle
With the interest rate environment hopefully stabilising, broker-originated loan books are experiencing lower-than-expected attrition rates — improving the quality and predictability of trail income as a lending security.
4. Specialist Lender Availability
The maturation of specialist lenders serving the mortgage broking sector means that brokers now have genuine, purpose-built financing options available to them. Australian Business Credit, for example, offers:
- Loan amounts from $150,000 to $5,000,000
- Rates Better Generally Better than Bank Over Draught Ratres .
- No second mortgage or property collateral required
- Approval and funding typically within two weeks
- Interest-only and balloon payment options available
What Does a Trail Book Acquisition Deal Actually Look Like?
To understand the practical application, consider the following scenario:
The Opportunity:A mortgage broker with 25 years in the industry is looking to exit. Their trail book generates $45,000 per month in consistent trail commission. They want $1.2 million for the book — a reasonable multiple given quality and tenure.
The Buyer:A growing Sub-aggregator currently generating $120,000/month in combined trail income across their existing broker group.
The Old Way:The buyer approaches their bank. The bank doesn’t understand trail income as security. They either decline, require a residential property guarantee, or offer inadequate terms that make the deal unviable.
The New Way:The buyer approaches a lender specialising trail book lending. The combined trail income — $120,000/month existing, plus the $45,000/month being acquired — is assessed holistically. The acquisition is funded. The Sub-aggregator now controls $165,000/month in trail income and repeats the process.
The result: Compounding growth through a model that traditional lending simply cannot support.
What Brokers Need to Qualify
As an example, Australian Business Credit’s assessment process is straightforward and purpose-built for the broking industry:
- Minimum trail income: $10,000/month
- Income history: Six months of commission income statements
- Business structure: Any legal business entity
- Use of funds: Any legitimate business purpose, including acquisitions, expansion, equipment, working capital, and ATO debt
The approval timeline — typically around two weeks from application to settlement — means brokers can move quickly when acquisition opportunities arise, without losing deals to better-capitalised competitors.
The Broker’s Competitive Advantage
For mortgage brokers who have spent years building quality loan books and client relationships, trail book loans represent something genuinely transformative: the ability to treat what you’ve already built as a financial asset.
The brokers and broker groups who understand this — and act on it — are the ones positioned to emerge as the Super Sub-aggregators of tomorrow. They are using the recurring income they’ve earned to acquire more, consolidate more, and build businesses with genuine enterprise value.
For those approaching retirement, trail book loans also offer an alternative pathway: rather than selling outright, brokers can borrow against their book to fund succession arrangements, mentor incoming owners, or transition at their own pace.
