The Turnaround Time Report: A Strategic Analysis of the Broker vs. Branch Divide

 

 

Section 1: The Great Divide: Quantifying the Turnaround Time Chasm

 

The Australian mortgage market is currently defined by a stark and growing chasm in service levels, a reality that directly impacts the competitive standing of mortgage brokers and the financial outcomes of their clients. This is not a matter of minor operational friction but a significant, measurable market distortion centred on loan approval turnaround times (TTT). While major banks publicly promote accelerated approval speeds through their direct channels, the experience within the third-party channel tells a profoundly different story. The data reveals a two-tiered system where the path a borrower chooses—direct or via a broker—can dictate whether their loan is approved in hours or languishes for weeks, creating immense risk in a fast-moving property market.

 

1.1 The Headline Data: A 23-Day Wait vs. The 2-Hour Promise

 

The most jarring evidence of this disparity comes from industry-wide data that contrasts the banks’ marketing claims with the on-the-ground reality for brokers. According to the Mortgage & Finance Association of Australia (MFAA), data from major aggregator Connective reveals that clients applying for a home loan with one of the “Big Four” banks through a mortgage broker face a median wait of 23 days or more for unconditional approval.¹ This figure stands in stark opposition to public statements from major bank CEOs, who have claimed that approvals through their proprietary branch networks can be secured in a matter of hours, or at most, a few days.¹

This discrepancy has been a source of significant concern for industry bodies. MFAA CEO Mike Felton has described the banks’ claims of broker channel turnarounds being only “slightly longer” or averaging “around 12 days” as a “gross underestimate” of what the data shows brokers are actually experiencing.¹ The real-world consequences of this delay are severe. As Mr. Felton notes, “In today’s extremely competitive housing market, waiting more than three weeks to be approved is a nightmare for customers who are trying to bid on a home and secure finance”.¹ This delay effectively disadvantages the approximately 77% of Australian homebuyers who now rely on a broker, creating what the MFAA calls an unlevel playing field with a massive competitive impact.¹

The problem is not isolated to a single data source. Corroborating this trend, listed major aggregator AFG reported in its ASX-released Mortgage Index that turnaround times for its brokers had surged to a three-year high. For the quarter ending 31 March, the median TTT across all lenders reached 27.1 days, further cementing the reality of extended and often uncompetitive waiting periods for the broker channel.¹

 

1.2 The Lender Leaderboard: Identifying the Fastest and Slowest Players

 

While the headline figures point to a systemic issue, a deeper analysis of lender performance reveals that the turnaround time problem is not monolithic. Data from Agile Market Intelligence’s comprehensive Broker Pulse surveys demonstrates a clear bifurcation in the market. Some lenders consistently deliver fast, efficient service to the broker channel, while others are notable for their significant delays. This segmentation provides critical intelligence for brokers, underscoring that lender selection has become a primary strategic decision.

Large Authorised Deposit-Taking Institutions (ADIs):

Among the largest banks (those used by over 20% of brokers), the average TTT for an initial credit decision held steady at around four business days in May 2024.4 However, this average masks a significant performance gap.

Macquarie Bank continues to set the benchmark for the broker channel, leading the pack with a swift two-day turnaround. It is closely followed by other strong performers like National Australia Bank (NAB), Bankwest, and Suncorp, all recording an average of three days.⁴ Earlier in the year, in January 2024, the average TTT for large ADIs hit a record low of 3.8 days, with all four major banks (ANZ, CBA, NAB, and Westpac) taking four business days to reach an initial decision.⁵ This proves that speed and scale are not mutually exclusive.

Smaller ADIs:

This segment displays far greater volatility and contains some of the market’s slowest performers. The average turnaround time for smaller ADIs (used by less than 20% of brokers) increased from six days in April 2024 to eight days in May 2024.4

Newcastle Permanent stands out as a significant laggard, with its TTTs blowing out from 10 to 16 business days (more than three weeks) in May, causing its broker satisfaction rating to plummet.⁴ Similarly,

HSBC remained slow at 13 business days, and Bank of Sydney saw its TTTs jump to 11 business days.⁴ On the other end of the spectrum, lenders like

Teachers Mutual Bank and ubank demonstrated efficiency, delivering the fastest turnarounds in this segment at just three days.⁴

Non-Banks:

The non-bank sector maintained a stable average TTT of five days in May 2024. However, here too, performance varies. While many non-banks offer competitive speed, some, like La Trobe Financial, have recorded longer turnarounds, averaging 11 business days.4

This granular data makes it clear that while some lenders struggle with or deprioritise broker channel efficiency, a significant cohort of lenders across all segments has successfully engineered their processes to deliver the speed and reliability that brokers and their clients require.

 

1.3 The Gap is a Feature, Not a Bug

 

The evidence strongly suggests that the vast turnaround time disparity is not an accidental, industry-wide operational failure. Rather, it appears to be a concentrated and deliberate market feature, primarily driven by the strategic choices of certain major banks. The consistent high performance of technologically advanced, high-volume lenders like Macquarie Bank, which maintains a two-day TTT for broker-lodged applications, proves that fast and efficient service is entirely achievable at scale.⁴

When one of the country’s most significant lenders can build its entire mortgage business around the broker channel and deliver market-leading speed, the argument that the 23-plus-day delays at other major institutions are simply due to volume or complexity becomes untenable. The logical conclusion is that the TTT gap is a direct result of a calculated allocation of resources and a conscious decision to prioritise one channel—the more profitable direct channel—over another. This points not to an operational bottleneck, but to a deliberate business strategy designed to influence consumer choice, a strategy that will be deconstructed in the following section.

 

Table 1: Comparative Loan Approval Turnaround Times (TTT) by Channel and Lender Type

 

 

Channel	Lender Type	Lender Example(s)	Median TTT (Business Days)	Data Source(s)
Broker Channel	Major Banks (Big Four)	CBA, Westpac, ANZ, NAB	23+	MFAA / Connective 1
Branch/Direct Channel	Major Banks (Big Four)	CBA, Westpac, ANZ, NAB	1 – 5	MFAA (citing bank CEO claims) 1
Broker Channel	Large ADI (Top Performer)	Macquarie Bank	2	Broker Pulse 4
Broker Channel	Large ADIs (Strong Performers)	NAB, Bankwest, Suncorp	3	Broker Pulse 4
Broker Channel	Smaller ADI (Slowest)	Newcastle Permanent	16	Broker Pulse 4
Broker Channel	Smaller ADI (Fastest)	Teachers Mutual Bank, ubank	3	Broker Pulse 4
Broker Channel	Non-Bank (Slowest)	La Trobe Financial	11	Broker Pulse 4
Broker Channel	Non-Bank (Fastest)	AFG Home Loans, RedZed	2 – 4	Broker Pulse 5

Section 2: A Battle of Channels: The Banks’ Strategic Pivot to Proprietary

 

The significant disparity in turnaround times between the broker and branch channels is not an accident of circumstance; it is the visible manifestation of a calculated, long-term strategic pivot by Australia’s major banks. This shift is rooted in a fundamental battle for profitability and market control. Faced with margin compression and the continued rise of the broker channel, which now facilitates over three-quarters of all new home loans, major lenders are actively investing in and prioritising their direct-to-consumer (proprietary) channels. The extended wait times experienced by brokers are a key tactic in a broader campaign to make the direct path more attractive, recapture margin, and ultimately “dilute the mortgage broker value proposition”.⁷

 

2.1 Follow the Money: How Channel Profitability Drives Bank Strategy

 

At the heart of the banks’ strategic pivot lies a simple economic reality: loans originated directly are substantially more profitable than those sourced through mortgage brokers. A critical report from S&P Global Ratings, citing estimates from Commonwealth Bank (CBA), quantifies this difference, stating that proprietary loans are typically 20% to 30% more profitable than broker-originated business.⁷ This profitability gap is the primary economic engine driving the banks’ behaviour and their “love-hate relationship” with the third-party channel.⁹

The cost structure of the broker channel directly impacts bank margins. Lenders pay brokers a two-stage commission: a significant upfront fee, typically around 0.65% of the loan amount, and an ongoing trail commission of about 0.15% per year for the life of the loan.⁸ According to S&P, this commission structure “dramatically reduces the margin of broker-originated loans,” with the potential to erode profitability by as much as 40 basis points.⁸

In an intensely competitive mortgage market where price is a key determinant for winning business, this margin erosion is a major concern for bank executives.⁸ As a result, almost every bank in Australia is actively seeking ways to attract more customers through its in-house channels—branches, call centres, and digital platforms—to avoid paying broker commissions and capture the full profit from each loan.¹⁰ The differential treatment of turnaround times is a direct consequence of this financial imperative. By creating friction and delays in the less profitable broker channel, banks can make their more profitable direct channel appear faster and more efficient by comparison, thereby nudging consumer behaviour in their favour.

 

2.2 From the Top: Decoding CEO Commentary on Channel Prioritisation

 

This strategic intent is not merely inferred; it has been confirmed by the public statements and actions of senior banking executives. The commentary from the top reveals a clear focus on bolstering proprietary channels, often at the expense of the broker network that helped build their mortgage books.

National Australia Bank (NAB) CEO Andrew Irvine has been particularly candid. During the bank’s 1H24 results presentation, he stated that in a refinance-heavy market, returns on loans from the broker channel had fallen “below the cost of capital”.¹¹ He explained that while customers seeking to purchase a home were often willing to pay a price premium for NAB’s service certainty, refinancing customers were more price-sensitive, making the broker channel less profitable under those conditions.¹¹ This commentary directly explains NAB’s subsequent actions: a reported 3.8% drop in broker-originated flows and a corresponding increase in new loans from its proprietary channel, which grew from 35.1% to 38.9% of new lending.¹¹

This sentiment is echoed across the industry. Finsure Group CEO Simon Bednar has warned that as banks face a margin squeeze, they may look to lower channel costs, leading to “reduced loan applications circulating within the broker market” and a push back into proprietary channels that will ultimately harm consumer choice.¹² This is not just speculation. In 2025,

Bank of Queensland (BOQ) announced it was “doubling down” on its efforts to move away from the third-party channel, while NAB confirmed it had hired approximately 150 new proprietary home lenders in the first half of the year.¹³

Even lenders who publicly state their commitment to brokers have revealed an underlying ambition to grow their direct business. A former CBA chief executive, Ian Narev, previously commented on the bank’s goal to provide a “very compelling experience” through its own channels, one that would make customers “want to come to us and not through the broker channel”.¹⁴ These statements, combined with concrete actions, paint a clear picture of a coordinated strategic shift to prioritise direct lending.

 

2.3 The Digital Arms Race: Investing in AI to Sideline Brokers

 

The long-term “how” of the banks’ strategy is a massive investment in technology, particularly artificial intelligence (AI), to create a seamless, low-cost, and rapid direct-to-consumer channel. The ultimate goal is to automate the mortgage process to such an extent that, for many borrowers, the traditional value of a broker as a facilitator is diminished or eliminated.

The S&P Global Ratings report forecasts a “gradual shift to digital mortgages,” with banks leveraging AI to enhance speed, efficiency, and customer experience, all while cutting costs.⁷ By digitizing the process and offering greater price transparency, banks aim to systematically

“dilute the mortgage broker value proposition”.⁷

This is not a distant future; the digital arms race is already underway. The major banks are investing heavily in AI and data analytics to transform their lending operations:

• Commonwealth Bank (CBA) has accelerated its AI integration by migrating its entire data platform to Amazon Web Services (AWS) and establishing a dedicated “tech hub” in Seattle to be closer to global innovators like Amazon and Microsoft. CBA already uses AI for loan approvals, fraud detection, and managing the 55 million automated decisions it makes daily.¹⁵
• Westpac has partnered with global consulting firm Accenture to develop “Agentic AI”—intelligent bots designed to mimic human decision-making. The stated ambition is that these AI agents “may one day be able to process loan applications” automatically, representing a direct technological challenge to the broker’s role in loan processing.¹⁶
• NAB is actively using AI for critical functions like document verification and loan approvals, while its subsidiary Ubank leverages technology to do the “heavy lifting” so that staff can focus on customer conversations.¹⁶

This multi-billion-dollar investment in technology is the “carrot” in the banks’ strategy. While slow turnaround times act as the “stick” to deter use of the broker channel, a frictionless, AI-driven direct channel is being built to lure customers away for good.

 

2.4 A Coordinated, Multi-Front Strategy

 

When viewed collectively, the actions of the major banks reveal a coordinated, multi-front, and long-term strategy to reclaim market share and profitability from the broker channel. The pieces of the puzzle fit together logically. First, the motive is clear: the 20-30% higher profitability of direct loans provides a powerful financial incentive to shift volume away from brokers.⁷ This motive is openly acknowledged by bank leadership, who link broker channel usage directly to margin pressure and returns below the cost of capital.¹¹

Second, the tactics are two-pronged. The short-term tactic involves degrading the service quality of the less profitable channel. The 23-plus-day turnaround time for broker applications is not an operational failure but a strategic lever to create friction, frustration, and competitive disadvantage.¹ The second, long-term tactic is to simultaneously invest heavily in technology to build a superior alternative. The development of AI-powered digital mortgage platforms is designed to make the more profitable direct channel faster, cheaper, and more appealing to the end consumer.⁷

The strategic goal of this dual approach is to fundamentally re-engineer consumer behaviour over time. By making the broker path difficult and the direct path seamless, the major banks hope to “re-train” borrowers to come directly to them. This would allow them to “cut out the middleman,” dislodge the broker from the centre of the transaction, and capture the full margin on a greater share of the market.¹⁰ This represents not just a tweak to service levels, but a fundamental challenge to the prevailing mortgage distribution model in Australia.

Section 3: The Broker Counter-Offensive: Market Dominance and the Service Imperative

 

Despite the strategic pressures exerted by some major banks, the narrative of the Australian mortgage market is not one of broker decline. On the contrary, the third-party channel is demonstrating remarkable resilience and growth, fueled by overwhelming consumer preference for trust, choice, and expert guidance. As some traditional lenders attempt to steer customers towards their proprietary channels, a new class of “broker-centric” lenders has emerged, building their entire business models around empowering, rather than undermining, their broker partners. This has created a clear bifurcation in the market, where a broker’s success is increasingly tied to their ability to identify and champion lenders who are committed to the channel’s success.

 

3.1 The 77% Reality: Why Broker Market Share Continues to Climb

 

The most compelling counter-argument to the notion that banks are successfully eroding the broker channel is found in the market share data itself. The broker channel is not just surviving; it is thriving and consolidating its position as the dominant force in Australian mortgage origination.

According to the latest data commissioned by the MFAA, mortgage brokers settled a record-breaking 76.8% of all new residential home loans in the March 2025 quarter.³ This figure represents a new peak for the industry and showcases accelerating momentum, climbing from 74.1% in the first quarter of 2024 and 69.6% in the same period of 2023.² A decade ago, banks held the commanding lead, originating over half of all loans; today, they are left to compete for the remaining quarter of the market.²

The value of loans settled by brokers further underscores this dominance. In the March 2025 quarter alone, brokers facilitated $99.37 billion in new home loans, a staggering 22% increase from the $81.47 billion settled in the prior corresponding period.³ This sustained growth is a clear testament to the enduring value proposition brokers offer and indicates that, for now, the banks’ strategies to sideline the channel are not translating into a decline in consumer demand. Consumers are unequivocally voting with their feet, choosing the expertise and choice offered by a broker in record numbers.

 

3.2 The Consumer Verdict: Trust, Choice, and the Enduring Value of Advice

 

The relentless growth in broker market share is driven by fundamental consumer needs that a single-lender channel struggles to meet: trust, choice, and expert navigation. In an increasingly complex lending environment, borrowers are seeking more than just a product; they are seeking a trusted partner.

Independent research highlights the deep level of trust brokers have cultivated with their clients. An overwhelming 90% of surveyed clients believe their mortgage broker acts in their best interests, and 91% state they would recommend their broker’s services to family and friends.¹⁸ These are net promoter scores that most businesses, including major banks, could only dream of achieving.¹⁹ This trust is built on the broker’s legal obligation to act in the borrower’s best interests—a stark contrast to a bank employee who is ultimately selling their employer’s products.²

The core value proposition of the broker channel remains powerful. Brokers provide access to a wide panel of lenders, offering a breadth of choice that no single bank can match.² They possess the expertise to navigate complex lending policies, structure loans to meet specific client goals, and handle the significant administrative burden of the application process.²¹ As some banks make the lending process more opaque and difficult through inconsistent service levels, the value of an expert guide who can cut through the complexity and deliver a timely outcome only increases.

 

3.3 The Rise of the Broker-Centric Lender: A New Breed of Partner

 

A critical development in the current market is the emergence of a distinct class of lenders that have unequivocally chosen to build their strategy around the broker channel. These “broker-centric” lenders view brokers not as a costly distribution network to be managed down, but as their primary, strategic partners for growth. For brokers navigating the challenging landscape, identifying and aligning with these partners is the most effective counter-offensive.

Macquarie Bank stands as the preeminent case study in this category. For the fourth consecutive year, it has been ranked as the number one lender overall in the highly regarded ‘Brokers on Banks’ survey.²⁴ It consistently earns top marks from brokers for its performance across the most critical attributes: turnaround times, BDM support, credit assessment staff, and credit policy.²⁴ This is no accident; it is the result of a deliberate strategy. Over

90% of Macquarie’s home loan volume originates from brokers, demonstrating a deep and structural commitment to the channel’s success.⁶ The bank actively solicits and acts on broker feedback to evolve its offering, recognizing that its success is intrinsically linked to the success of its broker partners.⁶

Macquarie is not alone. Other lenders have also carved out a reputation for being strong broker partners:

• Bankwest has consistently earned top rankings for the quality of its BDM support, a factor of growing importance to brokers seeking guidance in a complex market.²⁵
• ING is frequently praised by brokers for its proactive and competitive pricing, quick approvals, and efficient loan document issuance.²⁵
• P&N Bank, a mutual lender, provides a powerful example of how service excellence is a choice. It achieved a “remarkable turnaround” to be rated the highest among mutual banks in the 2025 Broker Pulse survey. This was achieved through specific, broker-focused improvements, including the implementation of a new case management process that “vastly improved turn-around times and broker satisfaction,” the launch of web chat support, and the provision of CPD-accredited training for brokers.²⁶

These lenders demonstrate that it is possible to build a successful, high-volume mortgage business by embracing the broker channel as a true partner.

 

3.4 The Market Bifurcation

 

The Australian mortgage lending market is undergoing a fundamental bifurcation. It is splitting into two distinct and opposing camps, each with a different strategic view of the third-party channel.

On one side are the major banks that, driven by margin pressure, increasingly view the broker channel as a high-cost necessity to be managed, contained, and, where possible, circumvented. Their actions—prioritising direct channels, investing in disintermediating technology, and allowing broker service levels to lag—reflect a strategy aimed at reducing their reliance on brokers over the long term.¹

On the other side are the broker-centric lenders. This group, which includes agile non-majors, innovative non-banks, and even some divisions of the major banks, has chosen a different path. They view the broker channel as their primary and most efficient engine for growth. Their strategies are built on empowerment: providing exceptional BDM support, maintaining fast and consistent turnaround times, and developing clear, broker-friendly credit policies.⁶

For the modern mortgage broker, recognizing this divide is paramount. Success no longer hinges on simply having a large panel of lenders; it depends on the strategic curation of that panel. The most critical decision a broker can make in the current environment is which of these two camps to align their business with. Actively championing and directing business to the broker-centric lenders is not just a matter of securing better service for a single transaction. It is a strategic vote for a business model that ensures the broker’s continued relevance and supports a healthy, competitive lending market for all consumers.

 

Table 2: The Broker-Centric Lender Matrix: 2025 Service Level Rankings

 

 

Lender	Overall Broker Rating (Score out of 5)	Turnaround Time Rank	BDM Support Rank	Credit Policy Rank	Key Broker-Facing Feature
Macquarie Bank	3.939	1st	2nd	1st	Consistently market-leading speed and broker-friendly policies 25
Bankwest	3.746	3rd	1st	3rd	Best-in-class BDM support for three consecutive years 25
ING	3.654	2nd	3rd	4th	Proactive, competitive pricing and quick approvals 25
CommBank	3.434	4th	4th	6th	Consistency and strong brand recognition 25
Westpac	3.428	5th	6th	5th	Priority Refinance and tiered service for brokers (Gold, Platinum) 22
ANZ	3.360	6th	5th	7th	Comprehensive product suite 25
NAB	3.331	7th	7th	8th	Strong in commercial and business finance diversification 25
Suncorp Bank	3.316	8th	8th	2nd	Elite status for top brokers and strong credit policy rating 22

Source: Based on data from the MPA ‘Brokers on Banks 2025’ survey. Rankings reflect broker perceptions of lender performance over the previous 12 months.²⁵

Section 4: Collateral Damage: The Real-World Cost of Delays for Clients

 

The strategic decisions made in bank boardrooms have tangible and often devastating consequences for Australian homebuyers on the street. The abstract data point of a 23-day turnaround time translates into very real human and financial costs. For clients caught in the crossfire of the channel war, a lender’s delay is not a minor inconvenience; it is a primary risk factor that can lead to immense stress, lost opportunities, and significant financial penalties. Understanding and articulating this collateral damage is crucial for brokers to demonstrate their value and guide clients away from potentially disastrous choices.

 

4.1 The Human Cost: Anxiety, Stress, and the “Fear of No Approval”

 

The emotional toll of a delayed loan approval in a competitive property market cannot be overstated. The uncertainty and powerlessness experienced by borrowers waiting weeks for a decision creates what one study has termed a “fear of no approval”.³⁰ This anxiety is a direct result of the disconnect between the speed of the property market and the pace of some lenders’ assessment processes.

A study conducted by digital lender Nano provides stark evidence of the consequences. It found that a staggering one in five (20%) Australian borrowers reported missing out on purchasing a property specifically because of a delay in securing full, unconditional approval from their lender—even when they already held a pre-approval.³⁰ For approximately one in ten of these borrowers, this frustrating experience happened twice.³⁰

This situation adds an unnecessary layer of anxiety to what is already one of the most significant and stressful financial decisions in a person’s life. The slow approval times of traditional lenders, often bogged down by manual credit-underwriting and excessive paperwork, create a daunting and high-stakes waiting game for buyers.³⁰ When a dream home is on the line, a lender’s delay can be the breaking point that shatters a client’s confidence and jeopardizes their property aspirations.

 

4.2 The Financial Cost: How Approval Delays Fuel Property Price Lockout

 

Beyond the emotional stress, loan approval delays carry a direct and quantifiable financial cost, particularly in a rising property market. A slow lender can effectively price a client out of the market while they wait, turning a manageable purchase into an unaffordable one.

Modelling conducted by Aussie Home Loans powerfully illustrates this “cost of waiting.” The analysis shows that a homebuyer who delays their purchase from 2025 to 2026 could face an average additional cost of $77,000 over the life of their loan.³¹ This figure is not due to higher interest rates but is a direct result of property price growth outpacing any potential savings from rate cuts. The buyer would also need an extra $7,000 just for their deposit to cover the higher purchase price.³¹

This “waiting tax” is even more pronounced in Australia’s hotter property markets. The same analysis found the cost of a one-year delay could be as high as:

• $164,000 in Western Australia
• $138,000 in South Australia
• $130,500 in Queensland ³¹

These figures provide a powerful financial argument against choosing a lender known for slow turnarounds. A delay of several weeks caused by an inefficient lender can mean the difference between securing a property and being forced to find a significantly larger deposit to keep up with a market that has moved on without them. In this context, a broker’s ability to secure a fast approval is not just a convenience; it is a direct financial benefit that can save a client tens or even hundreds of thousands of dollars.

 

4.3 Client Story: The 46-Business-Day Nightmare

 

To bring the data to life, the real-world experience of one borrower encapsulates the absurdity and danger of lender delays. As recounted by Nano’s CEO, a customer who had been with his bank for 25 years was told he had “no chance” of getting his loan approved in time to meet a 21-day settlement clause on a property he wished to purchase.³⁰

Despite already holding a pre-approval from the bank, the fastest turnaround time the lender could offer him was 46 business days—more than nine calendar weeks.³⁰ This single anecdote powerfully illustrates the failure of the traditional banking model to meet the needs of the modern property market. It shows that long-term loyalty to a major bank can be punished with unworkable service levels, and it highlights the critical role of a mortgage broker in finding a viable alternative when a client’s own bank fails them at the most crucial moment.

 

4.4 Reframing the Conversation

 

The evidence of the human and financial cost of delays empowers brokers to fundamentally reframe their conversations with clients. The choice of lender should not be presented as a simple trade-off on interest rates. Instead, it must be positioned as a strategic decision about risk management and deal certainty.

A broker’s Best Interests Duty requires them to consider factors beyond the headline rate. The data clearly shows that a lender with a slow turnaround time represents a significant risk to the client’s transaction—the risk of missing out on a property, the risk of incurring substantial financial costs due to market movements, and the risk of extreme emotional distress.

This understanding allows a broker to confidently justify recommending a lender that may have a slightly higher interest rate but boasts a proven track record of fast, reliable approvals. The conversation shifts from “this lender’s rate is 5 basis points higher” to a more powerful, value-driven statement: “This lender will give us an approval in three days, which gives you the confidence to bid at auction this weekend and protects you from the potential $77,000 cost of being delayed in this market.” By articulating the risks in these clear, data-backed terms, the broker demonstrates their indispensable value as a strategic advisor who is actively protecting the client’s interests in a complex and often hostile lending environment.

Section 5: The Broker’s Playbook for 2025: Navigating the New Lending Landscape

 

The current market dynamics, defined by the strategic priorities of lenders and the escalating needs of consumers, present both a significant challenge and a clear opportunity for the modern mortgage broker. Success in this new landscape requires a proactive and strategic approach. It demands a conscious shift away from being a passive facilitator of transactions towards becoming an indispensable strategic advisor. This playbook outlines the key recommendations for brokers to not only navigate the challenges of the two-tier market but to thrive within it, solidifying their value and future-proofing their business.

 

5.1 Recommendation: Master the Two-Tier Market – Champion Your True Partners

 

The most critical strategy for brokers in 2025 is to acknowledge and master the bifurcated lending market. This means consciously and deliberately aligning with the cohort of broker-centric lenders who have proven their commitment to the third-party channel through consistent, high-quality service.

Brokers should actively curate their lender panels, moving beyond a simple reliance on brand recognition or historical relationships. The selection criteria must be data-driven, prioritizing the holistic service metrics detailed in Table 2 of this report: turnaround times, BDM support, and the clarity and flexibility of credit policy.²⁵ This involves a strategic decision to “starve the banks that are starving you” of service and to “feed the partners that are feeding you” with consistent, reliable support and efficient processes.

This is not merely a reactive measure to avoid frustration; it is a proactive business strategy. By championing lenders like Macquarie Bank, Bankwest, ING, and high-performing mutuals, brokers achieve two goals. First, they deliver superior outcomes for their clients, providing the speed and certainty required to compete in the property market. Second, they collectively support a healthier and more competitive lending ecosystem. Directing volume to lenders who invest in the broker channel sends a powerful market signal that service excellence is valued and rewarded, creating a positive feedback loop that benefits the entire industry.

 

5.2 Recommendation: Fight Fire with Fire – Arming Your Brokerage with Technology

 

As banks invest billions in AI and digital platforms to enhance their direct channels, brokers must fight fire with fire by embracing technology to boost their own efficiency, scalability, and client experience. Adopting a modern tech stack is no longer optional; it is essential for survival and growth. The goal is to automate low-value administrative tasks to free up time for high-value, relationship-building activities.

Key technology categories and leading tools for the modern brokerage include:

• Workflow and Process Automation: The average loan application can consume around 20 hours of processing time.³² Platforms like
  BrokerEngine are specifically designed to streamline this entire process. They offer customisable workflows, automated task management, and integrations that significantly reduce the administrative burden, allowing brokers to focus on sales and strategy.³³
• Serviceability and Policy Analysis: Manually comparing policies and calculating serviceability across dozens of lenders is a major time drain. Tools like Quickli are a game-changer, combining over 20 lender calculators into a single interface that delivers accurate serviceability results and relevant policy insights in real-time, saving hours of research per application.³³
• Client Retention and Repricing: In a market where 80% of borrowers are on variable rates, client retention is paramount.³⁵ AI-powered tools like
  Sherlok proactively analyze a broker’s trail book, using algorithms to predict which clients are at risk of refinancing elsewhere and automatically initiating the repricing process with their current lender. This strengthens client relationships and protects a broker’s primary asset.³³
• Trail Book Management and Analytics: Understanding the financial health of a brokerage is critical. Track My Trail automates the analysis of commission statements, providing clear insights into lost and gained trails, identifying the most profitable clients and lenders, and replacing cumbersome spreadsheets with an actionable dashboard.³³
• AI-Powered Assistants: Generative AI tools like ChatGPT and transcription services like ai can be integrated into daily workflows to dramatically improve efficiency. They can be used to draft client emails, create marketing content and blog posts, summarize meeting notes, and ensure key action items are never missed.³⁷

 

5.3 Recommendation: Redefine Your Value – From Loan Facilitator to Strategic Advisor

 

As technology automates the simple, transactional aspects of securing a loan, the future of mortgage broking lies in elevating the broker’s role. The most successful brokers will be those who move beyond being mere loan facilitators to become holistic, strategic financial advisors.

This evolution involves several key shifts:

• Diversification: The data shows a clear trend of brokers expanding their services beyond residential mortgages. Industry leaders are urging brokers to diversify into adjacent markets like commercial and business finance, asset and equipment finance, and SMSF lending. This not only creates new revenue streams but also deepens the client relationship, making the broker a central point of contact for all their financing needs.²⁹
• Specialisation and Team Structure: The era of the “do-it-all” broker is giving way to more structured and scalable business models. For firms looking to grow, building teams with specialised roles—such as dedicated loan processors, client care managers, and marketing support—is crucial. This improves efficiency, removes bottlenecks, and allows the principal broker to focus on high-level strategy and client acquisition.³⁵
• Business Acumen and Brand Building: With over 75% market share, the primary competition for a broker is no longer the banks; it is other brokers.³⁵ Success requires treating the practice like a
  business, not just a job. This means investing in brand building, developing a clear value proposition, implementing structured marketing and client retention systems, and having a long-term succession plan.³⁵

 

5.4 The Proactive Communication Strategy

 

Ultimately, the turnaround time gap, while a threat, can be transformed into a powerful communication and trust-building tool for the proactive broker. Clients are often unaware of the channel-based disparities in service; they only experience the frustration of the delay. A broker who can proactively explain these market dynamics positions themselves as a true industry insider and a trusted advocate.

By transparently communicating the strategy—”We are recommending Lender A over your current bank, Lender B, because Lender A is a dedicated broker partner who will assess your application in three days. Lender B, while a good bank, is currently prioritising its branch applications, and their turnaround time for brokers like me is over four weeks, which would put your purchase at risk”—the broker achieves several things. They demonstrate deep market intelligence, they justify their recommendation with a clear, client-centric rationale, and they powerfully articulate their own value.

This approach turns the banks’ anti-broker strategy on its head, using it as evidence for why a client needs an expert navigator. It proves that the broker’s role is not just to find a rate, but to understand and mitigate hidden risks within a complex system, a service the client could never perform for themselves. In doing so, the broker solidifies their position as the client’s indispensable partner, ensuring their relevance and success in the evolving lending landscape of 2025 and beyond.

 

Table 3: The Broker’s Technology Toolkit for 2025

 

 

Tool Category	Tool Name(s)	Core Function	How it Fights TTT Delays / Improves Efficiency
Workflow Automation	BrokerEngine	Manages the end-to-end loan process with custom workflows, task automation, and document management.	Reduces the 20+ hours of manual processing time per loan, minimizes errors, and ensures consistent client communication, freeing up brokers for value-add tasks.32
Policy & Serviceability	Quickli	Provides real-time serviceability calculations and policy comparisons across a wide panel of lenders in a single interface.	Eliminates hours of manual research and prevents rework by ensuring applications are submitted to the right lender with the right structure the first time.33
Client Retention & Repricing	Sherlok	Uses AI to analyze a broker’s trail book, identify clients at risk of leaving, and automate the repricing process.	Protects a broker’s largest asset by proactively managing client retention, preventing the need to constantly replace lost clients.33
Trail Management	Track My Trail	Automates the analysis of commission statements to track lost/gained trail, and identify profitable clients and lenders.	Provides clear, data-driven insights into business performance, allowing for more strategic decisions on where to focus time and resources.33
Document Management	FileInvite, FinanceVault	Automates the collection and organization of client supporting documents in a secure, compliant digital portal.	Speeds up the pre-submission phase by eliminating the back-and-forth of email attachments and ensuring a complete application package is ready sooner.33
AI Assistants	ChatGPT, Otter.ai	Generates content (emails, marketing copy), summarizes meetings, and transcribes conversations.	Drastically cuts down time spent on administrative communication and documentation, allowing for faster follow-ups and better record-keeping.37

Works cited

1. Loan approval turnarounds from the major banks penalising mortgage brokers and their customers – MFAA, accessed July 6, 2025, https://www.mfaa.com.au/news/loan-approval-turnarounds-from-the-major-banks-penalising-mortgage-brokers-and-their-customers
2. How high can broker market share get? | Australian Broker News, accessed July 6, 2025, https://www.brokernews.com.au/news/breaking-news/how-high-can-broker-market-share-get-284851.aspx
3. How technology is changing the mortgage broking industry – Stryd Broker, accessed July 6, 2025, https://www.stryd.au/blog/how-technology-is-changing-the-mortgage-broking-industry
4. Turnarounds slow at smaller banks: Broker Pulse – Broker Daily, accessed July 6, 2025, https://www.brokerdaily.au/lender/19207-turnarounds-slow-at-smaller-banks-broker-pulse
5. Large ADI turnarounds at fastest pace yet: Broker Pulse, accessed July 6, 2025, https://www.brokerdaily.au/lender/18843-large-adi-turnarounds-at-record-low-broker-pulse
6. 2024 MPA Brokers on Banks – Macquarie Bank, accessed July 6, 2025, https://www.macquarie.com.au/brokers/home-loan-brokers/mpa-brokers-on-banks.html
7. Report predicting ‘gradual’ shift to digital mortgages – Broker Daily, accessed July 6, 2025, https://www.brokerdaily.au/lender/20490-report-predicting-gradual-shift-to-digital-mortgages
8. The Aussie home loan market is shifting away from mortgage brokers – Interest.co.nz, accessed July 6, 2025, https://www.interest.co.nz/banking/133731/australian-banks-are-moving-upgrade-proprietary-channels-mortgage-generation-expense
9. Are big banks breaking up with mortgage brokers?, accessed July 6, 2025, https://www.yourmortgage.com.au/mortgage-news/love-hate-relationship-why-big-banks-are-stepping-back-from-brokers
10. Australian Banks Want Borrowers Back–And Mortgage Brokers Out Of The Way, accessed July 6, 2025, https://www.spglobal.com/ratings/en/research/articles/250610-australian-banks-want-borrowers-back-and-mortgage-brokers-out-of-the-way-101625904
11. NAB broker flows drop as it focuses on proprietary channel – Broker …, accessed July 6, 2025, https://www.brokerdaily.au/lender/19654-nab-broker-flows-drop-as-it-focuses-on-proprietary-channel
12. Banks’ push for market share threatens brokers – CEO, accessed July 6, 2025, https://www.brokernews.com.au/news/breaking-news/banks-push-for-market-share-threatens-brokers–ceo-284797.aspx
13. Are banks turning their backs on brokers? | Australian Broker News, accessed July 6, 2025, https://www.brokernews.com.au/news/breaking-news/are-banks-turning-their-backs-on-brokers-287121.aspx
14. ANZ confirms home loan strategy, channel preference – Broker Daily, accessed July 6, 2025, https://www.brokerdaily.au/economy/11386-major-bank-confirms-home-loan-strategy-channel-preference
15. CommBank accelerates AI integration with major data migration to cloud, accessed July 6, 2025, https://www.commbank.com.au/articles/newsroom/2025/06/cba-ai-migration-cloud.html
16. Lenders embrace the AI revolution | Australian Broker News, accessed July 6, 2025, https://www.brokernews.com.au/news/breaking-news/lenders-embrace-the-ai-revolution-286859.aspx
17. Mortgage broker market share reaches new peak – MFAA, accessed July 6, 2025, https://www.mfaa.com.au/news/mortgage-broker-market-share-reaches-new-peak
18. Australians turn to mortgage brokers as the property market heats up – MyState Bank, accessed July 6, 2025, https://mystate.com.au/home-loans/australians-turn-to-mortgage-brokers-as-the-property-market-heats-up/
19. Affordability and serviceability will continue to bite in 2024 – Brighten Home Loans, accessed July 6, 2025, https://brighten.com.au/resources/media-centre/affordability-and-serviceability-will-continue-to-bite-in-2024-brighten/
20. Why mortgage brokers are the preferred channel for home loans in Australia, accessed July 6, 2025, https://kredi.com.au/loan-basics/why-mortgage-brokers-are-the-preferred-channel-for-home-loans-in-australia/
21. Why More Aussies Are Turning to Mortgage Brokers in 2025 – @ Finance, accessed July 6, 2025, https://www.at-finance.com.au/why-more-aussies-are-turning-to-mortgage-brokers-in-2025/
22. Priority Service With Banks | Which Brokers Get Fast Approvals? – Home Loan Experts, accessed July 6, 2025, https://www.homeloanexperts.com.au/about-us/priority-service-mortgage-broker/
23. Mortgage Broker Vs Bank: Pros And Cons In Australia – Track My Trail‎ ‎💸️, accessed July 6, 2025, https://trackmytrail.com.au/mortgage-broker-vs-bank-australia/
24. Revealed! Which lender do brokers most highly rate?, accessed July 6, 2025, https://www.brokerdaily.au/lender/19194-revealed-which-lender-do-brokers-most-highly-rate
25. Brokers on Banks 2025 | Mortgage Professional Australia, accessed July 6, 2025, https://www.mpamag.com/au/best-in-mortgage/brokers-on-banks-2025/528029
26. 2025 Third-Party Lending Report: P&N Bank – Broker Pulse, accessed July 6, 2025, https://www.brokerpulse.com.au/news/p-n-bank-rated-highest-among-mutual-banks-in-annual-independent-broker-survey
27. Your Broker And Home Loan Partner – Westpac, accessed July 6, 2025, https://www.westpac.com.au/brokers/
28. Best Banks & Lenders For Mortgage Brokers In Australia (Top 5 In 2025) – Track My Trail‎ ‎💸️, accessed July 6, 2025, https://trackmytrail.com.au/best-lenders-mortgage-brokers-australia/
29. Future-proofing broker education in 2025 | Business Research and …, accessed July 6, 2025, https://business.nab.com.au/future-proofing-broker-education-in-2025/
30. Approval delays cause 1 in 5 Aussies to miss out on property | Your …, accessed July 6, 2025, https://www.yourmortgage.com.au/mortgage-news/approval-delays-cause-1-in-5-aussies-to-miss-out-on-property
31. ‘$7.7b cost’: Why you shouldn’t delay buying a home – realestate.com.au, accessed July 6, 2025, https://www.realestate.com.au/news/77b-cost-why-you-shouldnt-delay-buying-a-home/
32. Mortgage Broker Loan Processing: The Complete Guide (2024) – BrokerEngine, accessed July 6, 2025, https://brokerengine.com.au/loan-processing/
33. Best AI Tools For Mortgage Brokers In Australia (Top 5 in 2025 …, accessed July 6, 2025, https://trackmytrail.com.au/best-ai-tools-mortgage-brokers-australia/
34. Leveraging technology for efficient offsite loan processing – Brokers’ BackOffice, accessed July 6, 2025, https://brokersbackoffice.com/insights/enhancing-loan-processing-efficiency-with-technology/
35. Top 10 Mortgage Broking Industry Trends for 2025 – BrokerEngine, accessed July 6, 2025, https://brokerengine.com.au/mortgage-broking-industry-trends/
36. Using Technology To Enhance Mortgage Brokering In Australia – Track My Trail‎ ‎💸️, accessed July 6, 2025, https://trackmytrail.com.au/technology-mortgage-brokering-australia/
37. How AI is Reshaping Mortgage Broking: Tools to Streamline Your Business – Connective, accessed July 6, 2025, https://www.connective.com.au/blog/how-ai-is-reshaping-mortgage-broking-tools-to-streamline-your-business
38. The future of mortgage broking: Why succession planning matters more than ever, accessed July 6, 2025, https://www.theadviser.com.au/growth/46802-the-future-of-mortgage-broking-why-succession-planning-matters-more-than-ever