iscover
Westpac announced its results for 3Q25. Across its mortgage portfolio, the proprietary channel makes up 46 per cent of its home loans.
As of June 2024, this figure sat at 48.7 per cent. Brokers have managed to chip away 2.7 per cent of Westpac’s proprietary loans over the year.
Back in February, as the broker versus proprietary channel debate heated up once again, Westpac reinforced its commitment to brokers.
“We know many Australians are choosing to partner with a broker, which is why we’re investing in initiatives to support brokers and their customers, such as reducing the time to decision on applications to below five days,” said Damien MacRae, Westpac’s managing director, mortgages.
Despite what leadership said, each of the majors is vying for a piece of the lucrative proprietary profits.
In CBA’s recent yearly results, the bank said that proprietary loans are 20–30 per cent more profitable than broker-originated ones.
CBA also has a far higher proprietary share, making up 67 per cent of its total mortgage originations.
In Westpac’s case, the results proved that broker-originated loans can be as successful as proprietary.
As of June 2024, the total mortgage portfolio was $504.2 billion. This rose to $515 billion in June 2025.
In the same period, broker-originated loans increased while proprietary dipped.
Owner-occupied loans made up 68 per cent of the total, up slightly from 67.7 per cent in June 2024.
Investor loans were 31.1 per cent of the total, down slightly from 31.2 per cent in June 2024.
First home buyer activity increased, climbing from 11.5 per cent of the bank’s total mortgages in June last year to 12.5 per cent in June 2025.
Another trend highlighted in the results is the shifting number of borrowers opting for a variable rate.
As of June 2024, 89 per cent were on a variable rate, and the remaining 11 per cent fixed.
In June 2025, 97 per cent of the total mortgage portfolio was on a variable rate, while just 3 per cent was fixed.
With 2025 experiencing three interest rate cuts already, clearly borrowers are remaining vigilant to market changes and leveraging them to make informed financial decisions.
This evidence speaks to the shifting nature of the modern borrower. High interest rates, inflated property prices, and a harsh cost of living mean the public needs to be aware and alert.
A 25-basis-point cut may seem insignificant, but can boost a family’s borrowing capacity by tens of thousands.
[Related: Broker v proprietary: Will the majors push out third party?]
