Debt Consolidation Australia

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Refinancing:
The process of obtaining a new mortgage to replace an existing one, often to secure a lower interest rate.

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Major Banks Rethink Mortgage Strategies Amid Profit Margin Squeeze

Understanding the Implications of Banks' Shift from Mortgage Brokers

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Australia's leading banks-Commonwealth Bank of Australia (CBA), Westpac, National Australia Bank (NAB), and ANZ-are actively reducing their dependence on mortgage brokers.

This strategic shift aims to bolster profit margins that have been under pressure due to lower interest rates, rising operational costs, and intense market competition.

Currently, mortgage brokers facilitate nearly 80% of new home loans in Australia, a significant increase from about 50% six years ago. However, banks are now prioritizing in-house mortgage origination channels, which are reported to yield 20-30% higher returns compared to broker-originated loans. By focusing on proprietary channels, banks can avoid broker commissions and foster deeper customer relationships.

For consumers, this transition may lead to changes in the mortgage application process. While brokers have traditionally offered a broad comparison of loan products, direct engagement with banks might provide more tailored offerings. Prospective borrowers should assess the benefits of both channels to determine the most advantageous approach for their individual financial situations.

Published:Tuesday, 18th Nov 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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Finance News

CBA's Q1 2025 Profit: A Delicate Balance Between Growth and Margin Pressures

18 Nov 2025: Paige Estritori

Commonwealth Bank of Australia (CBA), the nation's largest bank by market value, has reported a modest increase in its first-quarter cash profit for 2025. This uptick is primarily attributed to robust growth in home loans and household deposits. The unaudited cash profit stands at approximately A$2.6 billion, marking a 1% rise from the previous two-quarter average and a 2% increase compared to the same period last year. - read more

Major Banks Rethink Mortgage Strategies Amid Profit Margin Squeeze

18 Nov 2025: Paige Estritori

Australia's leading banks-Commonwealth Bank of Australia (CBA), Westpac, National Australia Bank (NAB), and ANZ-are actively reducing their dependence on mortgage brokers. This strategic shift aims to bolster profit margins that have been under pressure due to lower interest rates, rising operational costs, and intense market competition. - read more

Renewed Optimism: Australian Consumer Confidence on the Rise

18 Nov 2025: Paige Estritori

In November 2025, Australian consumer sentiment has turned optimistic for the first time since early 2022, marking a significant shift in public economic perception. The Westpac-Melbourne Institute survey indicates a 12.8% increase in the consumer sentiment index, reaching 103.8. A reading above 100 suggests that more consumers are optimistic than pessimistic. - read more

LMG's Asset Finance Exchange Hits $80 Million Milestone in First Year

10 Nov 2025: Paige Estritori

Loan Market Group's (LMG) Asset Finance Exchange (AFX) has achieved approximately $80 million in settlements within its inaugural year, underscoring the robust growth of Australia's asset finance market. The platform connects mortgage brokers with asset finance specialists, facilitating streamlined access to asset finance solutions. - read more

NAB's $4.6 Billion Profit Amidst Australia's Housing Crisis

10 Nov 2025: Paige Estritori

National Australia Bank (NAB) has reported a cash profit of A$7.09 billion (US$4.6 billion) for the year ending September 30, 2025, reflecting a stable financial performance. Despite this, CEO Andrew Irvine has identified the housing crisis as Australia's most pressing societal and policy challenge, advocating for expedited decision-making to stimulate economic growth and enhance housing availability. - read more

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