Banks are offering discounted rates for customers who don’t use mortgage brokers.
ANALYSIS
The banks have had enough!
For too long, they’ve been lending money to Australians so they can buy homes, only to then have to pay a commission to a mortgage broker for organising the home loan.
Competition is very hot in the lending space right now, making it very hard for banks to maintain market share and protect those multi-billion dollar profits. So not only are banks at war with each other, but they are also fighting mortgage brokers.
And they have some decent ammunition.
Finder analysis of interest rates on offer has shown that the big banks offer their best deals to customers who apply online with them directly.
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ANZ offers an average interest rate of 5.50 per cent for direct customers, compared to an average 6.14 per cent for loans brokered via third party. That’s an annual saving of up to $3140 on an average loan.
Westpac and CBA offer average savings of $2050 a year with a 0.43 per cent difference in rates for direct online customers.
Bendigo and Adelaide Bank, plus Bank of Qld also offer significant savings for direct customers.
Big banks are putting savings on the table for direct customers.
These incentives come at a time where mortgage brokers have increased their market share of loans written to more than 75 per cent, up from 56 per cent in 2019, according to Graham Cooke, Finder head of consumer research.
“If you’re a single-income household, self-employed or have employment gaps, mortgage brokers can help improve the strength of your application to banks and lenders – but they don’t always result in a lower interest rate,” Mr Cooke said. “This data shows that it is possible to get a low rate by applying directly with a bank and cutting out the middle man – as I did with my home loan.
“That’s not to say that these are the final rates. Brokers can negotiate a rate down if they can prove you are a low-risk lender. You can also potentially negotiate a lower rate directly with your lender, especially if you threaten to refinance.”
For most people, money talks.
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Separate Finder research revealed that 54 per cent of borrowers consider a cheaper interest rate the most important aspect of choosing a home loan. A further 12 per cent said an offset account was their main factor. That’s 64 per cent of borrowers focused solely on home loan elements that will save them money.
But going directly to a bank has its potential downsides.
“Applying directly with a bank limits your options to one lender’s products, which means you could miss out on better rates or more flexible features elsewhere,” Cooke said.
“It also increases the risk of being declined due to hidden policy quirks, which can harm your credit score.
Finder’s Graham Cooke says cutting out the “middle man” can save on rates.
“Bank staff aren’t required to act in your best interests, so the advice you get can be sales-driven rather than tailored. A broker, on the other hand, compares multiple lenders, pre-screens your application, and is legally obliged to recommend what suits you best.”
Canstar data insights director Sally Tindall said that while banks are looking to use lower costs to attract new business, they still rely heavily on new loans coming in via brokers.
“According to APRA data, 63 per cent of new loans settled in the June 2025 quarter were via a third party,” Ms Tindall said.
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“In the case of three of Australia’s biggest banks, brokers don’t have access to the loans offering their lowest advertised rates, however, they are often able to secure unadvertised discounts.
“That said, for people looking to pay as little interest to their bank on their mortgage, what matters is the rate they’re paying, not the size of the discount.
“Anyone opting for a digital-only loan really needs to be happy managing their finances primarily online or via an app on their phone, although banks will typically offer additional support in some cases, where needed.
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