Australia’s big four banks plan to ramp up efforts to reduce their reliance on mortgage brokers in the home loan market to offset pressure from lower interest rates, higher costs and intensifying competition.
In Australia’s US$1.6 trillion (A$2.45 trillion) home loan market, mortgage brokers now account for around 80% of new home loans, compared to about 50% six years ago, UBS estimates.
This makes Australia one of the most broker-reliant markets globally.
Following full-year earnings results, Westpac, NAB and ANZ all named the shift to more in-house home loan originations as a key strategic theme.
These banks are seeking to boost their share in the mortgage market, led by the Commonwealth Bank, which was the most profitable “big four” lender and the only one that originates the majority of its home loans.
The other three banks are looking to lift their share of residential lending.
"We're going to keep working hard to improve the penetration of proprietary home lending, which is 20% to 30% better returning than the broker book," NAB CEO Andrew Irvine said on an earnings call.
This comes as banks’ profits were weighed down by lower interest rates, increased competition, litigation, and restructuring-related costs at some lenders.
The banks led by CBA reported combined full-year cash earnings of around A$30 billion in the 2025 fiscal year, down 4.5% from the year before.
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