Broker volumes rise in second half even as proprietary channels retain lion's share of new mortgage lending
Commonwealth Bank of Australia (CBA) has recorded an increase in its broker-originated home loan flows in the second half of the 2026 financial year compared to the first half.
Broker-originated home loans rose from 33% of CBA's new fundings in the first half of FY26 to 36% in the second half, according to the bank's FY26 Results Presentation and Investor Discussion Pack. The corresponding proprietary share eased from 67% to 64% over the same period, marking the first meaningful uptick in broker volumes after several years of steady share erosion at the bank.
The shift comes despite the bank's (and its competitors’) multi-year strategy of prioritising proprietary distribution, even as CBA continues to reserve the bulk of new business for its direct channels.
Proprietary channels, including CBA-branded home loans, still accounted for the majority of new fundings in the second half, having held steady at a higher level across the two prior halves.
CBA maintains that proprietary-originated home loans remain 20-30% more profitable than broker-written loans, once upfront and trail commissions and lower operating expenses are factored in.
Home lending growth tracks broader market
CBA's total home loan balances grew solidly over the year, comfortably crossing the $680 billion mark.
New home loan fundings for the year totalled $200 billion across the two halves, with the bank recording growth broadly in line with system – meaning home lending expanded in step with the broader market rather than outpacing it.
The results also point to softening demand. CBA's home loan application volumes fell year-on-year to early August 2026, with investor loan applications down more sharply than owner-occupier applications over the same period, which the bank links to the cumulative effect of interest rate movements on borrower demand.
Despite the moderation in volume growth, CBA extended its position as the country's largest home lender. The bank's home loan market share, measured against Australian Prudential Regulation Authority (APRA) data, edged higher over the year.
Business lending was the standout performer among CBA's core divisions, growing well ahead of system compared with home lending and household deposits, which both tracked system growth.
CEO points to disciplined execution amid a slowing economy
In the bank's 2026 Annual Report, Chair Paul O'Malley and chief executive Matt Comyn jointly acknowledged a more difficult operating backdrop over the year. "The past year has been marked by heightened uncertainty," the pair wrote, pointing to cost-of-living pressures and higher interest rates that "continued to affect households unevenly."
Looking ahead, the leadership team flagged a softer housing outlook while pointing to areas of resilience in the broader economy. "Softening in housing activity may weigh on household spending," they wrote, "however there are reasons to be optimistic, including Australia's low unemployment and investment in data centres, defence and the energy transition."
