Australia’s biggest home lender has increased the proportion of new mortgages written through brokers, reversing a multi-year trend of channelling business through its own branches and digital platforms.
Broker-originated fundings climbed from 33% of new home loans in the first half of the 2026 financial year to 36% in the second half, according to the bank’s annual results disclosure. Direct channels still hold the majority at 64%, but the three-percentage-point shift marks the first sustained uptick in broker share after years of steady decline.
The move comes despite the lender’s stated preference for direct distribution, which it maintains delivers 20-30% higher profitability per loan once commission costs and operational overheads are factored in.
Why the channel mix is shifting now
The increase in broker share coincides with falling investor loan applications and softer overall mortgage demand. Total home loan applications tracked lower year-on-year to early August 2026, with investor applications down more sharply than owner-occupier volumes.
When demand runs hot, direct channels can handle the flow. When applications moderate but pricing competition stays tight, lenders face a choice: turn away volume or route more business through brokers who can process applications the bank’s own staff can’t absorb without adding headcount.
Broker channels also carry lower fixed costs during volume troughs. Commission expenses flex with fundings; branch networks and salaried staff do not.
The lender’s home loan book still grew solidly, crossing $680 billion in total balances with $200 billion in new fundings across both halves of the year. Growth tracked system, meaning the bank expanded in line with the broader market rather than gaining share aggressively.
The catch
- Broker share rose to 36% in H2 FY26, up from 33% in H1
- Proprietary channels still account for 64% of new fundings
- Total new home loan fundings hit $200 billion for the full year
- Investor loan applications fell more sharply than owner-occupier volumes
- The bank retains market leadership despite softer application growth
What this means for pricing and access
Higher broker share typically signals tighter pricing competition. Brokers compare rates across lenders in real time; direct channels rely on brand loyalty and service bundling.
When a lender routes more volume through brokers, it’s either chasing share or offloading capacity pressure. In this case, the bank grew in line with system and maintained market leadership, which points to the latter.
That creates two implications for borrowers. First, brokers gain bargaining power when lenders need their distribution capacity, which can translate to sharper pricing on competitive products. Second, direct channel capacity constraints may lengthen processing times for applicants who go straight to the bank, especially during rate-cut windows when refinancing surges.
The bank’s leadership flagged softer housing activity ahead in its annual report, noting cost-of-living pressures and higher rates “continued to affect households unevenly.” They also pointed to low unemployment and infrastructure investment as offsets, but warned that “softening in housing activity may weigh on household spending.”
Scenarios and what could reverse the trend
Base case: broker share stabilises near current levels as long as direct channels face capacity or cost constraints. If mortgage demand picks up sharply, the bank reverts to prioritising proprietary distribution where profit per loan runs higher.
Upside for brokers: a sustained refinancing wave driven by rate cuts would push more volume through third-party channels, since borrowers refinancing tend to shop multiple lenders rather than stick with their existing bank. That scenario favours broker market share across the industry, not just at one lender.
Downside: the bank invests in automation or offshore processing to expand direct channel capacity without adding headcount. That would let it reclaim share from brokers without sacrificing margin.
The investor loan pullback adds another variable. Investor applications fell more sharply than owner-occupier volumes, and investor loans typically carry higher serviceability hurdles and closer credit scrutiny. If that segment stays weak, lenders may tighten credit overlays or pull back cashback offers, which would reduce broker negotiating leverage even if their share of fundings stays elevated.
For context on how serviceability tests are evolving across the market, see Mortgage serviceability checks tighten as lenders price in refinance risk.
Practical steps if you’re applying or refinancing
If you’re in market now, the shift in channel mix creates a small window. Brokers have more distribution leverage when lenders need their pipeline, which can translate to better rates or faster credit decisions on straightforward applications.
Start here: get a broker comparison and a direct quote from your existing lender. If the broker rate is sharper and the application timeline is similar or faster, the channel shift is working in your favour. If the direct channel is quoting faster turnaround despite a higher rate, capacity constraints haven’t hit your lender yet.
Watch serviceability buffers and credit overlays closely over the next three to six months. If lenders start tightening assessment rates or shortening acceptable loan terms, it’s a signal they’re managing risk rather than chasing volume, which would reverse the broker share trend.
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General info, not financial advice.
