A strategic analysis of the growing divide between the broker and branch channels.
The Australian mortgage market is defined by a stark reality: the channel a client chooses dictates their wait time, creating an unlevel playing field with massive competitive impact.
23+
Median Days
(via Big Four Banks)
1-5
Days
(Bank CEO Claims)
Performance is not monolithic. Data reveals a clear split between fast, broker-centric partners and those lagging behind. Choosing the right lender has become a primary strategic decision.
This gap isn't an accident; it's a feature. Driven by higher profits on direct loans, some banks employ a dual strategy to re-engineer consumer behaviour over time.
💰
Proprietary loans are **20-30% more profitable** than broker-originated business, creating a powerful incentive to shift volume away from brokers.
👎
Degrade broker channel service. The 23+ day wait time is a strategic lever to create friction and make the broker path appear inefficient.
👍
Invest heavily in AI and tech to build a seamless, fast, and low-cost direct channel designed to lure customers away for good.
A slow approval isn't just an inconvenience. For clients, it's a primary risk factor with tangible human and financial consequences.
20%
of borrowers reported losing a property purchase specifically due to a delay in securing full approval.
$77k
Average additional cost for a homebuyer delaying their purchase by one year due to property price growth.
46
The TTT quoted to one loyal 25-year bank customer, forcing him to seek an alternative for a 21-day settlement.
Despite these pressures, the broker channel is stronger than ever. Consumers are overwhelmingly choosing the trust, choice, and expert guidance that only a broker can provide.
Actively curate your lender panel based on data. Directing volume to broker-centric lenders like Macquarie and Bankwest delivers better client outcomes and supports a healthier ecosystem.
Arm your brokerage with technology. Adopt a modern tech stack (e.g., BrokerEngine, Quickli) to automate low-value tasks and free up time for strategic advice.
Move from loan facilitator to strategic advisor. Reframe the conversation around risk management, using the cost of delays to prove your indispensable value.