With competition in the mortgage market intensifying, Commonwealth Bank (CBA) is doubling down on its direct channel strategy.
Earlier this month, Australian Broker reported that CBA is offering customers up to 300,000 Qantas points as an incentive. The points scale with loan size: borrow between $300,000 and $499,999 and earn 100,000 points; $500,000 to $999,999 loans score 200,000 points; and loans of $1 million or more are eligible to receive the full 300,000 Qantas points.
But to access the points, borrowers must use CBA’s digital-only "Digi Home Loan" mortgage platform, a move that signals the bank’s broader push to shift customers away from traditional mortgage brokers and toward its direct offering.
But CBA general manager of third-party distribution Baber Zaka told Australian Broker that the new offering "is designed for a specific cohort of customers, those who want a fully digital, self-service experience with no face-to-face support."
Zaka added: "At CommBank, we recognise the essential role brokers play in helping Australians achieve home ownership and are committed to sustainably growing our broker flows as part of our broader home lending strategy."
Peter White, managing director of the Finance Brokers Association of Australia (FBAA), said the new offering is "a bit of a mixed bag. It does say to me that, yes, they're trying to attract people on a direct basis, or away from the broker channel. But Commonwealth Bank's been very public about that over the last few years, that they're focus is on proprietary and not the broker network."
In May, CBA updated its variable interest rate for new home loan borrowers. But, much like the Qantas points deal, applicants must apply online through the major's digital direct-to-consumer channel, which also eliminates the need for brokers.
Zaka told Australian Broker that same month that the bank "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. Our goal is to forge strong partnerships with brokers who share our values and objectives."
Then in August, CBA group executive for retail banking services Angus Sullivan told analysts during the major's full-year earnings results, that his ambitions for the bank are for approximately half of all refinanced home loans to go through the bank's digital channel.
CBA has the largest share of home loans in Australia, at 25.3% as of 31 July, according to the Australian Prudential Regulation Authority (APRA). Additionally, the major's mortgage book grew by 6% in the last financial year.
But analysts estimate that only 10% to 20% of borrowers rely solely on digital channels to manage their mortgages, as many remain hesitant to proceed without human interaction.
It's no surprise then that, despite some lenders' interest in growing their own channels, brokers are still in demand – at least for now. Mortgage brokers settled approximately 76.8% of all new residential home loans during the March 2025 quarter, according to the Mortgage & Finance Association of Australia (MFAA).
Meanwhile, competition in the mortgage market has intensified this year, driven in part by the Reserve Bank of Australia’s (RBA) three rate cuts, which have boosted borrowing capacity and encouraged new players to enter the market. And with the potential of more interest rates on the table sometime in 2025 or 2026, the momentum isn't likely to die down anytime soon.
Borrowers and brokers are reaping the benefits, many of whom are looking to find better deals on existing loans, or the most competitive offers on new ones, as lenders scramble to retain market share.
Currently, CBA, Qantas Money, Qudos Bank and La Trobe Financial offer Qantas frequent flyer points with a home loan, according to Canstar, while 13 lenders offer cash back incentives.
White said he's not surprised by escalating competition in the market, and said brokers can leverage current market dynamics to reevaluate and strengthen their strategies.
"I think brokers around Australia need to decide what's in their best interest as a business, and also the best interest of their clients," he said. "Because I think the thing we all need to remember is that nothing is free in this world. CBA is giving away frequent flyer points. But someone is paying for it somewhere."
