Broker Pulse Residential Lending wrap-up: November 2024

Building on the recently-shared November 2024 Broker Pulse: Residential Lending results, we’re exploring some of the most interesting details that the engaged Broker Pulse community shared. 

Broker flows

November saw ANZ surge to the top as the most commonly used lender among brokers, with 52% of brokers submitting applications to the major bank. This marks a notable increase from previous months and reflects ANZ's ability to meet broker expectations through competitive offerings and reliable service. Macquarie Bank maintained its strong presence in the market, securing 45% broker usage and reinforcing its reputation for consistent turnaround times and broker satisfaction.

Westpac followed as the third most used lender, with 35% of brokers submitting applications to them during November. Among non-major banks, Firstmac emerged as the standout performer, capturing 12% usage. This reflects the growing appeal of non-major banks, particularly among brokers prioritizing flexibility and client-specific needs.

In the non-bank segment, usage remained modest but steady. Advantedge, Connective Home Loans, and AFG Home Loans led the non-ADI market, each accounting for 3% of broker applications. While their overall market share remains small, these lenders continue to gain traction with brokers seeking tailored solutions for their clients.

Decision drivers

Brokers’ decisions on lender choice were again heavily influenced by product pricing and client circumstances. Among major banks, 48% of brokers identified product pricing as a key factor, while 74% emphasized the importance of aligning lender offerings with their clients' unique circumstances. This trend highlights the competitive pressure on major banks to deliver pricing that matches borrower expectations while providing a seamless and reliable experience.

For non-major banks, product pricing remained the dominant decision driver, cited by 72% of brokers. Ease of use, however, was also a notable factor, with 30% of brokers referencing this as a key consideration. The ability to streamline application processes and reduce friction for brokers continues to give non-major banks a competitive edge.

Within the non-bank segment, client circumstances drove decision-making for 71% of brokers, underlining the role of these lenders in addressing complex or non-standard borrower needs. Turnaround times were the next priority, cited by 23% of brokers, reinforcing the importance of speed and responsiveness for non-bank lenders looking to grow their market share.

Turnaround times

Large ADIs

Turnaround times among the large ADIs segment remained steady in November, averaging 3.7 business days. Macquarie Bank retained its position as the fastest lender in this segment, delivering decisions in just 2 business days. This efficiency continues to be a key differentiator for Macquarie, particularly as brokers place growing emphasis on speed to meet client expectations.

Other large ADIs, including NAB, ING, and CBA, followed closely behind, with all three averaging 3 business days for initial credit decisions. These lenders’ ability to maintain consistency in turnaround times has been well-received by brokers, reflecting positively on their reliability and operational efficiency.

At the slower end, AMP Bank recorded an average turnaround time of 6 business days. While this marks a slight improvement from previous months, AMP’s longer processing times remain an area for improvement.

Small ADIs

In the small ADIs segment, UBank stood out with the fastest turnaround times, averaging 2 business days. This exceptional result highlights UBank’s operational efficiency and its ability to cater to brokers looking for quick decision-making.

Great Southern Bank and HSBC also performed well, both reporting average turnaround times of 4 business days. This consistency places them ahead of many other small ADIs and reinforces their appeal among brokers seeking faster processing for their clients.

On the other end of the spectrum, Heritage Bank and Newcastle Permanent reported significantly longer turnaround times of 10 and 11 business days, respectively. These delays may impact broker confidence and highlight areas where these lenders need to focus on improving operational efficiency.

Non-ADIs

Among the non-ADI lenders, Advantedge, Connective Home Loans, and AFG Home Loans delivered industry-leading turnaround times of 3 business days. This performance underscores their agility and responsiveness, which continue to resonate with brokers seeking quick approvals for their clients.

Meanwhile, Bluestone Mortgages and Firstmac followed closely with average turnaround times of 4 business days, reflecting consistent service delivery. However, La Trobe Financial recorded the slowest turnaround times in the non-ADI segment, averaging 9 business days. These delays may challenge brokers who prioritize speed and could impact La Trobe’s standing in the segment moving forward.

Broker experience

Large ADIs

Macquarie Bank continued to lead broker satisfaction among the large ADIs, achieving an impressive 95% satisfaction rating for the three months to November. Brokers praised Macquarie for its reliable service, consistent turnaround times, and overall positive experiences across the BDM, application, assessment, and settlement stages.

Bankwest followed closely with a satisfaction rating of 90%, reflecting the bank’s focus on supporting brokers and delivering strong client outcomes. ING and Suncorp also received positive feedback, with satisfaction ratings of 88% and 86%, respectively.

At the other end, AMP Bank and ANZ recorded satisfaction scores of 73%, indicating areas where brokers feel these lenders could improve, particularly in communication and application processes.

Small ADIs

Among small ADIs, Great Southern Bank led the way with a broker satisfaction rating of 90%. Brokers commended Great Southern Bank for its efficient processes and strong support through each stage of the lending journey. Beyond Bank and MyState also performed strongly, achieving satisfaction scores of 84%.

While these results highlight the appeal of smaller ADIs, challenges remain for some lenders. Heritage Bank, for example, recorded the lowest satisfaction in this segment at 57%, reflecting broker frustrations with longer turnaround times and inconsistent experiences.

Non-ADIs

In the non-ADI segment, AFG Home Loans achieved the highest broker satisfaction rating at 93%, marking them as a standout performer. Brokers praised AFG Home Loans for their responsiveness, consistent communication, and streamlined processes. Advantedge and Bluestone Mortgages followed closely, with satisfaction ratings of 88% and 82%, respectively.

Meanwhile, La Trobe Financial and Resimac recorded lower broker satisfaction scores of 67% and 76%, respectively. These results highlight areas where brokers feel improvements are needed, particularly in communication and turnaround times.

About this survey

This month, Broker Pulse surveyed 271 residential brokers between the 1st and 16th of December 2024 to uncover their experiences with lenders through November 2024. The survey asks participating brokers to share their experiences with the lenders they've used throughout the month. Brokers are asked to rate each lender's turnaround times, credit assessment staff, BDMs and their overall experience. Broker responses are aggregated each month and distributed back to participating brokers and lenders to enable transparency across the market with the goal of improving consumer outcomes. This community-driven initiative is powered by brokers who want to unlock the collective experiences of their fellow brokers to make more informed decisions.

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