The latest industry figures out this week reveal that mortgage brokers now account for 76.8% of all new residential home loans, a record high. This upward trajectory isn’t just a win for brokers, it’s great news for borrowers, and for you, our valued referral partner.
Why is this surge such a positive? Because it reflects a continued shift in what homebuyers value: choice, tailored advice, and better access to lenders.
The news comes in the same week that ANZ announced it is going to double down it’s efforts to have borrowers deals directly with them, rather than via a broker. They, like CBA, should probably read the tea leaves and focus on where more and more borrowers are going to source their loans – to a broker.
In this week’s newsletter, we explain what Open Banking is, and why it’s adoption has been so slow.
You’ve may have heard the term Open Banking floating around, usually said with a mix of excitement (by a small few) and confusion (by a great many). So, what is it really?
In short, Open Banking is about giving consumers control of their own financial data. Under Australia’s Consumer Data Right (CDR), customers can choose to securely share their banking info (like transaction history or account balances) with accredited third parties, such as brokers, accountants and financial planners.
The idea is simple: make banking more open, faster, and fairer. By allowing trusted advisers to access real data (with permission), borrowers can get better deals, faster loan decisions, and smarter insights into how they manage money. It’s like finally getting your finances to talk to each other instead of living in separate silos.
So, if it’s such a good idea, why hasn’t it taken off?
For one, awareness is still low. Most of us don’t know what Open Banking is, let alone why they should use it. Add to that the usual mix of “data sharing” nerves, complex technical setups for banks, and a lack of shiny new tools that show off its benefits, and it’s easy to see why progress has been a little slow out of the gates.
But the potential is huge. Imagine a world where a broker or lender can – with a client’s consent – instantly access accurate, verified financial data instead of waiting for statements or screenshots. That means faster approvals, less paperwork, and a smoother experience for everyone involved.
So, what needs to happen next? Regulators are already looking at expanding Open Banking into what’s being dubbed “Open Finance”, which could include things like super, insurance, and investments. They’re also exploring “write access,” which would let consumers do things, like switch lenders or make payments more easily, not just share data.
The bottom line: Open Banking is coming, it’s just taking the scenic route. Once it hits its stride, it has the potential to make lending smarter, faster, and more transparent. And that’s great news for brokers, referrers, and, most importantly, the clients you send our way.
Variable
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR.
1 Year Fixed
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR. At the end of the three year fixed period, the borrowers interest rate will revert to a standard variable rate for the life of the loan.
