The competition among Australia’s home loan lenders has never been fiercer. As interest rates stabilise and the property market remains active, banks and non-bank lenders alike are stepping up their efforts to win mortgage customers. But in the middle of this modern day David and Goliath battleground, stands one clear hero: the mortgage broker. (You can guess who is who.)
With major banks slashing rates and alternative lenders launching innovative products, borrowers are facing more choice, and more confusion, than ever. That’s where mortgage brokers come in. Their ability to cut through the noise, compare real options, and negotiate on behalf of clients makes them not only relevant but essential in today’s lending environment.
The Big 4 Are Back in the Rate War
The big banks have reignited the rate war in a very public way. In the last few days:
- Commonwealth Bank (CBA) dropped its variable rate to 5.84% for new digital-only customers with a 40% deposit.
- Westpac and ANZ have matched or introduced similarly sharp offers in select categories.
These offers are exclusive to direct-to-consumer channels, bypassing brokers entirely.
These moves aren’t just about interest rates – they’re a clear sign that the banks are trying to claw back market share from brokers by luring customers into branchless, no-advice loan deals.
Once you’re a direct bank customer, there could be a lot of legwork for you to know for sure if you are on the most competitive rate. Luckily, we have a solution for that too.
Sherlok’s RateTraker is an automated tool that helps mortgage brokers monitor their clients’ interest rates after settlement. By using open banking, RateTraker alerts you when a client’s loan rate becomes uncompetitive, giving you the chance to act fast and secure better terms for them.
Why It’s Not Just About the Headline Rate
These cut-price offers might look attractive at first glance, but they often come with fine print, limited access to support, or fewer features.
Mortgage brokers don’t just find the lowest rate – they ensure the home loan suits your long-term financial goals, offer side-by-side comparisons across lenders, and advocate for you throughout the process. In a market where lenders are playing strategic games, brokers continue to be the voice of the consumer.
Alternative Lenders: More Products, More Flexibility
While the big banks fight over headline rates, alternative lenders (non-bank and smaller lenders) are quietly gaining ground with more flexible, customer-focused offerings. Many of these lenders:
- Offer specialised products for self-employed borrowers, expats, or those with unique income structures.
- Provide faster turnaround times and more personalised service.
Brokers are in the best position to match borrowers with these emerging lenders, many of whom are not even on a customer’s radar.
You can read more about alternative lenders here.
Broker Market Share at Record Highs
According to recent MFAA data, mortgage brokers now write nearly 75% of all new home loans in Australia. That’s up from around 50% a decade ago. It’s little wonder we’ve got the banks scratching their heads as to how they can claw some of this market share back from the 3rd party channel.
However, this growth hasn’t come about by accident but instead it’s a direct result of borrowers who seeing the value in working with professionals who offer:
- Unbiased advice across multiple lenders
- Greater negotiating power
- An ongoing source of support with complex or non-standard applications
- Long-term relationship management
Direct-to-Consumer Offers: A Wake-Up Call
The latest digital-only, broker-excluded rate offers by CBA and others should be seen for what they are: an effort to control the conversation and limit customer choice.
Without a broker, borrowers are left to navigate products, policies, and interest rates on their own – often relying solely on what a single bank is willing to show them.
You can read more about the benefits of using a broker over going directly to the bank here.
Why Mortgage Brokers Are More Valuable Than Ever
In this competitive, fast-moving environment, the role of the mortgage broker has shifted from optional to essential. Here’s why:
- They cut through complexity: Comparing lenders, rates, fees, and features is overwhelming for most borrowers.
- They represent you: Brokers negotiate with lenders on your behalf, not the other way around.
- They think long-term: A good broker considers not just today’s rates, but your future plans, risks, and goals.
- They’re paid by the lender, not you: In most cases, broker services are free to the borrower.
As competition between lenders intensifies, banks are trying harder than ever to lure customers to them directly, but borrowers looking for customised service and ongoing support shouldn’t go it alone. Mortgage brokers are uniquely positioned to offer clarity, advocacy, and better outcomes in a market full of noise.
If you’re navigating the current mortgage market, now is the time to talk to a broker. Your financial future is too important to leave in the hands of a single lender’s offer.
If you haven’t already, head over and check out our amazing, obligation free RateTraker tool which is another way we can help keep the banks honest by giving you real time alerts on your home loan rate.
Alternatively, you can contact us directly here, or book in for a discovery call today.
Disclaimer: The information provided on this blog is for general informational purposes only and does not constitute financial or professional advice. While we strive to provide accurate and up-to-date information, mortgage laws and regulations can change, and individual circumstances may vary. We recommend consulting with a qualified financial advisor or mortgage broker to assess your specific situation and needs. Base Home Loans is not responsible for any actions taken based on the content of this blog. Always conduct your own research and consider seeking professional advice before making financial decisions.
