Study reveals the most broker-reliant banks in Australia

by AB16 May 2013

ING DIRECT, Macquarie, Adelaide Bank and BankWest home loan customers are more likely to have used a broker, compared to customers of other lenders, according to the latest findings from the Roy Morgan Research Finance Single Source Survey.

Roy Morgan also reports that, of all Australians with a home loan, the incidence of using a broker to purchase a mortgage or home loan has jumped from 25% in March 2009 to 29% for the latest 12 month period to March 2013.

Over the same period, 73% of ING DIRECT home loan customers used a broker when taking out their home loan (up from 65% in March 2009). This compares to 70% of Macquarie Bank customers (up from 61%), 62% of Adelaide Bank customers (no change over the last four years) and 52% of BankWest customers (up from 47%). These banks are all significantly higher in their use of mortgage brokers than the average of 26% for the majors.

Those who have used a broker are more likely than other mortgage holders to be aged 25-34 and either married or living in a de-facto relationship with no children.

Norman Morris, industry communications director at Roy Morgan Research, says there are several reasons why particular lenders’ clients may be more inclined to use a broker.

“The home loan market becoming increasingly complex and competitive, combined with the slowing growth in the market and a number of financial institutions without a strong branch network (i.e. ING Direct and Macquarie) utilising mortgage brokers, have all contributed to an increase in the use of mortgage brokers.”


  • by SIDBROKER 16/05/2013 10:27:24 AM

    Do brokers use bankwest still.???? They keep bringing out price point products and don`t allow the brokers to use them. I gave up on bankwest.

  • by M C 16/05/2013 10:27:36 AM

    Not rocket science. Those lenders identified dont have strong 'regional' branch representation (outside metro areas) so Australia wide to reach non metro based clients the broker channel offers a very cost effective & efficient alternative. That allows very sharp pricing without heavy branch oncosts & as we evolve & integrate more with 'E' commerce, those branch structures for 'basic' products will become redundant. Clients hold the relationship with the broker & simply use the bank for daya to day supply of 'basic' financial products. When I say basic, I'm distinguishing the difference between those & more complex commercial products.

  • by Jim W 16/05/2013 11:02:46 AM

    Bankwest, is mainly based in WA, where the use of Brokers is far and above that of the National average. The major Banks use of Brokers in WA is similar to that of Bankwest.