Broker-originated loans 20-30% less profitable than direct loans, claims Australia's largest bank
Commonwealth Bank saw decent growth in home loan balances in its 2025 financial year.
Per results released on Wednesday, home loan balances increase 6% year on year to $664.7 billion.
More than two thirds of Australian home loans were owner-occupier mortgages, with 31% comprising investment property loans.
Brokers originated 34% of CBA’s mortgage flows in the year, with proprietary and Unloan digital loans making up the lion’s share.
Broker flows reduced further in the second half to 33% of all originations.
According to the bank, broker originated home loans are around 20-30% less profitable than proprietary loans.
CBA chief executive Matt Comyn has blasted the broker channel in the past for having an unfair remuneration advantage over CBA banks. This has led to accusations of channel conflict as branch managers reportedly seek to refinance customers away from broker-originated loans.
More recently, investment in CBA’s digital loan offering Unloan has raised concerns among brokers of a further push away from the third party channel.
CBA’s Unloan marketing push, which implored customers to “flick the middle man”, amplified these concerns.
However, CBA said it supports "channel choice" by offering the largest home lending network, digital loans and 'broker-supported experience".
CBA called today’s results “strong… reflecting disciplined volume growth, continued cost management, and stable asset quality in a challenging operating environment”.
“The Australian economy is expected to grow modestly over the next 12 months, supported by population growth, ongoing business investment, and a gradual recovery in household consumption,” CBA added.
