Home loans are surging at Commonwealth Bank (CBA), even amid fierce competition, as the major bank sharpens its focus on direct distribution.
CBA revealed Tuesday that it grew its loan book by $9.3 billion in the three months leading up to September 2025, quarter over quarter. Year over year, home lending volumes grew 6.1% in the 12 months leading up to September.
Home loans made up 68% of the bank's proprietary channels for the quarter, (excluding subsidiaries Bankwest and Residential Mortgage Group), suggesting CBA is strengthening its hold over direct distribution.
In August, when reporting its full 2025 financial year results, CBA said broker-originated loans are roughly 20% to 30% less profitable than its own proprietary loans. As of the September quarter, the major bank said broker-originated loans made up 32% of new flows during the quarter, compared with 34%, during financial year 2025.
But the push toward proprietary channels is gaining momentum across the sector.
Earlier this month, National Australia Bank (NAB) reported its full year financial results for the 12 months ending in September 2025, showing that the bank's proprietary lending of Australian mortgages is growing.
During NAB's financial year 2025, 41% of NAB's mortgages in home lending were written through the proprietary channel, compared with 38% the year before. Third-party brokers still write the majority of home loans at the bank, just not as many as in previous years. In FY25, roughly 59% of all new business came through the third-party broker channel, down from 61.1% in the second half of FY24, and 64.9% in the first half of FY24.
Conversely, ANZ reported its annual results on Monday, indicating that brokers are increasingly writing loans at the bank. For the year, excluding Suncorp Bank, brokers originated 68% of new mortgages. Home loans written in the bank's proprietary channel, however, were 32% for the year, down from 33% a year earlier.
Still, ANZ said during its investor day in October that the bank plans to boost its mortgage sales force by increasing the number of in-branch lenders by 50%.
Westpac, the last of Australia's Big Four, revealed in August that mortgages in the bank's proprietary channel had dipped roughly 2.7% in 2025's third quarter, compared with a year earlier.
Still, the continued emphasis on proprietary channels has reignited market chatter over the future of broking, and whether brokers could lose ground as banks lean more heavily on their proprietary channels.
NAB has repeatedly said it is not moving away from third-party brokers.
"The broker channel is a hugely important channel," said Adam Brown, executive broker distribution at NAB.
Baber Zaka, CBA's general manager third party banking, echoed NAB's sentiment, telling Australian Broker that CBA is still committed to brokers.
"Mortgage brokers are at the heart of helping Australians into homes, and they remain central to our lending strategy," Zaka said. "We're focused on growing our flows sustainably, by listening to our brokers and adapting our services to meet their needs.
"This year we've updated our HELP debt, construction loan and rental income policies to give brokers greater flexibility and help more customers realise their home ownership goals," he continued. "We've also strengthened our broker support through a refreshed tiering system, expanded sales capability and implemented a national sales lead. Our focus is on long-term support, backed by better technology and processes to make it easier for brokers to do business with us.”
Overall, CBA posted a profit rise in the first quarter, standing out in a tough lending market. The bank navigated mixed market dynamics, including falling interest rates, new housing policies and relatively low unemployment, coupled with mounting pressures from rising prices and a national housing shortage. CBA's unaudited cash profit rose 2% during the quarter.
"We recognise cost-of-living pressures remain a challenge for many," the company said in a statement. "Despite escalating geopolitical and macroeconomic uncertainty, we are optimistic on the outlook for the country. We are closely watching the increased competitive intensity and implications across the financial system, and we will continue to adjust our settings as appropriate. The Australian economy remains resilient. Economic growth is recovering and disposable income is rising for many households. We remain focused on our strategy to build a brighter future for all."
