Mortgage brokers currently facilitate nearly 80% of new home loans in Australia, a significant increase from about 50% six years ago. However, banks are now prioritizing in-house mortgage origination to achieve better financial outcomes. CBA leads this transition, with only 32% of its home loans broker-originated in 2025, compared to higher figures at Westpac (67.5%) and ANZ (67%).
The move to internal lending channels is driven by the desire to improve net interest margins, which averaged just 1.8% in 2025. Proprietary channels typically yield 20–30% higher returns than broker-originated loans, allowing banks to avoid broker commissions and foster deeper customer relationships.
Despite a 4.5% decline in combined annual cash earnings to A$30 billion, the banks have expanded their mortgage portfolios. CBA's mortgage book grew by 6% to A$664.7 billion, while other banks reported approximately 5% growth. Retail banking now accounts for about 45% of profits for these institutions.
For consumers, this shift may lead to changes in the mortgage application process. Prospective borrowers might experience more direct interactions with bank representatives and potentially different product offerings. It's crucial for individuals to stay informed about these developments and consider how they may impact their mortgage options.
In conclusion, as Australia's major banks adjust their strategies to navigate a competitive and low-margin environment, consumers should remain proactive in understanding the evolving landscape of home loan offerings to make informed financial decisions.
