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This audio version covers: The Finance Talent War: Recruiting from the Majors
BREAKING NEWS FOR MODERN BROKERS
The Finance Talent War: Recruiting from the Majors
The Australian mortgage landscape in 2026 is defined by institutional retreat and third-party dominance. While major banks push proprietary lending, the reality is a shift toward the broker channel, which now facilitates approximately 77.3% to 78% of all new residential mortgages.[1, 2, 3] This dominance has created a “Finance Talent War,” making seasoned bank lending officers prime targets for brokerages.[1, 4]
In This Article
Step 1: The 2026 Battlefield
The transition of human capital from banks to brokerages is driven by a divergence in credit assessment. As of 2026, “standard” borrowers are rare; 1.1 million Australians now work as independent contractors, creating complexity that bank algorithms often fail to handle.[1]
The Complexity Gap
Major banks have prioritized digital-first, automated processing for simple deals. However, this leaves self-employed borrowers and those with trust structures in a state of policy limbo.[1, 4] For a bank staffer, the broker channel represents professional agency—the ability to utilize over 30 lenders to find a solution.[1]
Step 2: The Economics of Poaching
To recruit from the majors, brokerages must address “base salary anxiety.” While bank staff crave commission upside, they value the safety of corporate benefits.[5, 6]
| Role Title | 2026 Average Base Salary | Primary Earning Structure |
|---|---|---|
| Lending Consultant (Bank) | $68,000 [7] | Base + Small Bonus |
| Lending Manager (Bank) | $98,000 [7] | Base + Performance KPI |
| Mortgage Broker (Average) | $90,000 – $110,000 [7, 8] | Base + Uncapped Commission |
| Senior Broker | $120,000 – $160,000 [9] | High Base + Significant Trail |
| Principal / Partner | $200,000 – $300,000+ [9] | Business Profit + Asset Valuation |
Strategic Insight: The true cost of a new hire is roughly 1.25 to 1.4 times their base salary when factoring in superannuation, payroll tax, and the “productivity gap”—which takes an average of 6.2 months to bridge.[10, 11, 12]
Step 3: Strategic Career Pathways
Bank staff are accustomed to clear tiers. To retain them, brokerages must formalize internal ladders.
The 5-Year Roadmap
- Year 1 (Transition): Mastering the broker workflow and building the first 20 client relationships. Income: $38,500 – $60,000.[13, 14]
- Year 3 (Senior Broker): Managing a portfolio where trail income provides 45% of earnings. Income: ~$94,800.[14]
- Year 5+ (Equity/Partner): Moving into leadership or business ownership. Income: $142,000 – $285,000+.[9, 14]
Step 4: Advanced Cash Flow Engineering
Funding a competitive base salary requires liquidity. Specialized lenders now allow brokerages to leverage their most valuable asset—the trail book.
Managing the “90-Day Settlement Gap”
Private lenders and cash-flow specialized products provide rapid-response mechanisms for brokerages to cover payroll while awaiting incoming commissions.[15, 16, 17]
Step 5: The Compliance Checklist
Transitioning from a bank requires rigorous administrative onboarding to meet ASIC and industry body standards.[18, 19]
| Requirement | Status | Reference |
|---|---|---|
| Cert IV / Diploma (RPL available) | Mandatory | [18, 19, 20] |
| 2-Year Mentorship Program | Mandatory | [18, 21] |
| ACL Credit Representative Appointment | Mandatory | [18, 22] |
| Professional Indemnity ($2M Aggregate) | Mandatory | [18, 21] |
The Value Proposition Pitch
“At the bank, you’re limited by a single policy and institutional caps. Here, we follow the Best Interests Duty (BID). You have 30+ lenders at your fingertips, and the trail book you build is an asset you eventually own, not just a salary you earn.” [1, 23, 24]
Future-Proof Your Brokerage
The 2026 market belongs to firms that combine institutional discipline with entrepreneurial agility. By systematically recruiting from the majors and utilizing trail-backed funding, you are not just hiring—you are building a legacy asset.
Book Your Strategy Audit© 2026 The Broker Times. All information is for educational purposes for mortgage professionals.
