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The ongoing broker versus proprietary debate has heated up as broker flows at CBA dropped to 33 per cent, down from 35 per cent in FY24. Meanwhile, proprietary lending is up to 67 per cent.
The push for proprietary is showing no sign of slowing down, and brokers are understandably concerned. Look no further than the comments below, with many frustrated as Australia’s largest lender continues to push aside third party.
Channel conflict has remained a contentious issue in the lending market for years. A Broker Daily article from earlier this year had each of the majors reinforce commitment to the broker channel, but it fell on deaf ears as proprietary dominance continues.
Brokers are ever-vocal on the topic. In February, Shore Financial’s CEO Theo Chambers called proprietary lending a “detriment to the industry”.
One Broker Daily commenter put it plainly: “The three great lies... ‘Of course I will love you in the morning’, ‘The cheque’s in the mail’, and ‘We’re committed to supporting our brokers as we understand the pivotal role they play in helping Australians achieve their home ownership dreams.’”
Banks continue to speak of supporting brokers, but the constant push to maximise profits through proprietary contradicts these messages.
Many brokers are simply seeking transparency. If a lender is all-in on proprietary, they’d rather have it admit that, rather than instilling false hope in third party.
CBA’s head of third-party, Baber Zaka, has been on a mission to repair the rift between brokers and the lender since he stepped into the role in January.
He joined the Broker Daily Uncut podcast and unpacked the bank’s revived broker commitment.
“One of the biggest things I want to do coming into this role is be very transparent and open with brokers and actually rebuild some of the relationship that I think CBA has potentially lost over the last couple of years,” he said.
In response to the latest results, Zaka encouraged brokers to give CBA a go as the bank now has a team dedicated to brokers, as well as better tech and policies.
He said regaining broker flows was a “top priority”, and offerings are being altered based on broker feedback.
Results continued
Despite maintaining and growing strong proprietary originations, the portfolio value was more balanced between the two channels.
Broker-originated home loans made up 46 per cent of the total portfolio balance. Proprietary made up 54 per cent.
CBA made up a quarter (25 per cent) of the total mortgage market share in FY25, equal to FY24.
In its investor presentation, CBA said broker-originated loans are 20–30 per cent less profitable than proprietary loans.
Since June 2023, the major bank has increased its total market share of proprietary loans from 34 per cent to 52 per cent, as of March 2025.
Other lenders in the same period have seen a decrease of 66 per cent to 48 per cent.
Of its total loan portfolio, LMI loans made up 12 per cent, interest only (11 per cent), mortgage in possession (2 per cent), and negative equity (0.8 per cent).
During FY25, CBA has supported over 140,000 mortgages and lent around $42 billion to businesses. Net profit after tax was $10.1 billion, up 7 per cent from FY24.
Owner-occupied loans made up 59 per cent, while investors accounted for 41 per cent.
[Related: Broker v proprietary: Will the majors push out third party?]
