Major Australian Banks Reduce Dependence on Mortgage Brokers

CBA, the most profitable of the four, originates the majority of its loans in-house, and others are following this strategy. NAB, Westpac, and ANZ are hiring more bankers to drive direct home lending, highlighting the more favorable returns of proprietary channels compared to broker-originated loans.

While consumers prefer brokers for easier rate comparisons, the banks pay commissions that erode profit. The shift comes amid falling net interest margins, with the Big Four reporting a combined 4.5% drop in 2025 earnings to A$30 billion. Still, all banks have expanded their mortgage books, with CBA growing by 6% to A$664.7 billion. Despite this push, Westpac and ANZ have seen increased reliance on brokers, raising concerns over strategy execution. Retail banking now drives about 45% of Big Four profits, reinforcing the strategic importance of home lending.

For borrowers, this trend may lead to changes in the mortgage application process, with more direct interactions with banks. It's advisable for consumers to stay informed about these developments and consider how they might impact their mortgage options and experiences.