Looks like the broker-bank relationship could be on the rocks, with some lenders distancing themselves from the partnership.
Recently, a subtle shift has been occurring, with a number of Australian banks quietly redirecting their attention away from third-party brokers, instead focusing on growing their own proprietary lending channels.
In April, Bank of Queensland (BOQ) said it was doubling down on its efforts to move away from the broker third-party channel, redirecting more of its attention inward. The following month, National Australia Bank (NAB), revealed that it had hired roughly 150 new proprietary home lenders in 2025's first half. The move was meant to solidify its own direct lending capabilities, but reduced reliance, at least in part, on third-party brokers. The same day, Commonwealth Bank (CBA) updated its variable interest rate for new home loan borrowers. But the deal doesn't include brokers. Applicants must apply online through the major's digital direct-to-consumer channel, which also eliminates the need for brokers.
The developments have left some to question whether third-party brokers are losing their relevance in Australia's loan and mortgage markets — what a future with fewer mortgage brokers would look like. Some critics view the shift as banks' way of keeping the best deals for themselves, or to regain pricing power and protect profit margins.
Broker fans, however, continue to champion the role of mortgage brokers – and say any kind of conscious uncoupling is unadvisable.
"Any bank with a footprint in broking that turns their back on this channel will lose," Blake Buchanan, general manager at boutique aggregator Specialist Finance Group, told Australian Broker.
"Regardless of whether a borrower uses a broker, or sadly doesn't, they are getting a better deal because of brokers," he said. "The end rate for a consumer is between 2% to 3% cheaper today than what it was before brokers prominence. This is because brokers bring about competition. Competition means that lenders have to offer better policies and better pricing to win business."
He added, however, that brokers need to continue to consider all of the options for their clients, while adhering to the Best Interests Duty.
"I understand that banks have multiple channels for loan originations, and they are entitled to invest in these as they see fit, which can include an investment into their proprietary channels or digital, which is not always at the expense of the broker. So we should be cautious not to take this as an affront," Buchanan said.
But Peter White, managing director of the Finance Brokers Association of Australasia (FBAA) was a bit more critical of the banks' recent behavior.
"Any of the banks that are moving away from the broker distribution channel, which has helped them build their portfolios, is a bit of a low act," White said. "The broking industry supported these majors for quite a long time now."
Adam Brown, NAB executive, broker distribution, said the bank hasn't lost interest in brokers. He said the shift isn't about choosing between brokers or the bank's own proprietary channel.
"It's about being great at both," he said.
Johnny Lockwood, BOQ group general manager, broker and strategic partnerships, also said "BOQ Group values its brokers."
In a statement to Australian Broker, CBA general manager of third-party distribution Baber Zaka said: "At CommBank, we are committed to the broker channel as we understand the essential role mortgage brokers play in helping Australians achieve their homeownership dreams. With a steadfast focus on our customers, the third-party channel remains an integral part of our home lending strategy.
"We have and will continue to support our brokers by enhancing our technology, processes and workforce to make it even easier for them to do business with us," he continued. "Our goal is to forge strong partnerships with brokers who share our values and objectives."
Despite some banks' obvious interest in growing loyalty, digital capabilities and their own loan origination platforms, brokers are still in demand, at least for now. And it's clear that the duo won't be breaking up anytime soon.
According to the latest figures, released in March, approximately 76% of all new residential home loans in Australia are written by mortgage brokers, according to the Mortgage & Finance Association of Australia (MFAA).
Industry insiders attribute much of this growth to the relationships brokers build with clients.
"A broker is an expert that validates the choices of borrowers," Buchanan said. "Beyond getting a better deal, brokers act in the best interests of their customers by deeply understanding not only their position today, but their future goals and plans so that their borrowing circumstances align with them."
He likened the relationship to that of other professional services.
"When we need a new hot water heater at our house, we get a plumber to install it rather than doing it ourselves or the manufacturer," Buchanan said. "The plumber will advise on the best way to install it, how to best maintain it and make manufacturer recommendations. The manufacturer will simply want to sell you the heater.
"Brokers are the borrowers' trusted partners that will guide them throughout their lifetime borrowing journeys with their interests at the centre of everything they do.”
