Don’t miss our LinkedIn post where we first shared this exciting update!
Some big changes are happening in Australia’s mortgage industry, and if you’re a broker, you’ll want to pay close attention. At Unconditional Finance, we stay on top of industry shifts, giving brokers the insights they need to stay prepared and adapt with confidence.
In recent finance news, two of Australia’s largest banks, Commonwealth Bank and Westpac, have just announced new leadership for their third-party distribution teams. This might sound like just another corporate shake-up, but it could have a direct impact on you, your business, and the way you work with these banks.
So, what do these changes really mean? And, more importantly, how should brokers prepare? Let’s break it all down.
New Leadership, New Direction – Why This Matters
Whenever a bank appoints new leadership in third-party distribution, it is not just an internal move. It often signals larger changes in strategy, policy, and the way brokers interact with the bank.
Think of these leadership roles as the bridge between brokers and the banks. They’re responsible for how smoothly brokers can work with the lender, what kind of support brokers receive, and even how competitive commission structures are.
The big question is: Will these changes make life easier for brokers or more complicated?
Who Are the New Leaders at Commonwealth Bank and Westpac?
Let’s take a closer look at the key leadership changes at Commonwealth Bank and Westpac, who the new leaders are, and what their appointments could mean for brokers in terms of lending policies, broker relationships, and overall industry impact.
Commonwealth Bank
Baber Zaka has been appointed as the new General Manager of Third-Party Banking at Commonwealth Bank. With over 20 years of experience in finance across Australia and the UK, he previously served as Chief Operations Officer at CBA’s third-party banking division since 2020. His main focus will be on strengthening broker relationships and simplifying processes to give brokers more confidence when partnering with the bank.
Baber emphasised, “Having worked closely with brokers for the past five years, I know how important it is to have the right foundations and strong relationships, and this will remain a priority for me and the team.”
Westpac
Sarah Willsallen has been appointed as the new Head of Broker Distribution, while Warren Shaw takes over as National General Manager of Home Lending. Sarah brings over 15 years of experience in finance and has previously led mortgage broker distribution for Westpac in NSW and the ACT.
Warren is a highly experienced leader in the third-party channel, having held key roles at NAB. Their focus will be on enhancing broker partnerships and improving the efficiency of home loan processes.
Damien MacRae, Managing Director of Mortgages at Westpac, stated, “We want to be the bank of choice for brokers and customers and are continuing to invest in delivering market-leading service, competitive products, and new digital innovations to make it simpler and faster to do business.”
These leadership changes highlight the banks’ commitment to the broker channel, but it remains to be seen how their decisions will translate into real changes for brokers. For more details on what this could mean for the industry and broker relationships, check out this article by Broker Daily.
What This Means for Mortgage Brokers
These leadership moves could have some pretty big implications for brokers across Australia. Some of them could be great news. Others? Well, they might require some careful planning.
Better Bank-Broker Relationships
Let’s start with the potential wins. New leadership could lead to faster processing times for broker-submitted loans, stronger support from bank BDMs (Business Development Managers), and more competitive loan products designed specifically for the broker channel.
If the new leaders at Commonwealth Bank and Westpac are serious about strengthening broker relationships, we could see improvements in how efficiently loans are approved and how much brokers are valued in the process.
New Compliance & Lending Criteria
Brokers need to stay alert, as leadership changes often bring policy shifts that could make lending more challenging. This may include stricter lending criteria, making it harder for clients to qualify, increased documentation requirements, adding to the paperwork burden, and adjustments to compliance rules, which could impact how brokers operate.
Chris Raymond, Principal Finance Broker at Unconditional Finance, shared his thoughts, advising brokers to pay close attention to these leadership changes, as they could influence how these banks engage with the broker channel. He hopes the changes will lead to better broker partnerships, smoother processes, and improved service offerings to stay competitive.
We’ve already seen increased regulatory scrutiny from ASIC and APRA, and if these new leaders decide to tighten things up, brokers might need to work harder to get deals across the line.
Opportunities Brokers Should Take Advantage Of
It is not all bad news! While change can bring uncertainty, it also creates new opportunities for brokers who are ready to adapt. Those who stay informed, build strong relationships with lenders, and embrace industry shifts will be in the best position to benefit.
Advancements in Technology and Faster Processes
Many major banks are making significant investments in digital transformation. If the new leadership focuses on improving loan submission platforms and AI-driven processing, brokers could benefit from faster approval times, more user-friendly technology for tracking applications, and better data insights for client recommendations. Banks that simplify processes and enhance efficiency will naturally become the preferred choice for brokers.
Better Commission Structures & Broker-Exclusive Products
Another area to watch is whether Commonwealth Bank and Westpac will adjust broker commissions or introduce new mortgage products. There is speculation about the potential for higher commissions for top brokers and the introduction of home loan products designed specifically for the broker channel.
These kinds of changes could make it more rewarding for brokers to work with these banks, but only time will tell if these moves will actually happen.
Challenges Brokers Need to Watch Out For
It’s not just about the opportunities. Changes like these can also bring challenges, and brokers need to be ready for potential shifts in policies, lending criteria, and the way banks engage with the broker channel. Staying informed will be key to handling whatever comes next.
Will Lending Get Stricter?
One major concern is that these leadership changes could bring more conservative lending policies. If that happens, brokers may face tougher affordability tests for clients, an increase in declined loan applications, and longer processing times due to additional checks.
To stay ahead, brokers will need to adjust their approach, potentially by diversifying their lender panel and exploring alternative lending options.
Will Banks Push Direct-to-Consumer Lending?
Another possible challenge is a stronger push by banks toward direct-to-consumer lending, which could make it harder for brokers to access competitive loan products, receive the same level of support from banks, or compete with direct bank offers.
To remain competitive, brokers should focus on delivering expert advice and personalised service that customers won’t get from an online bank portal. Demonstrating value beyond just loan facilitation will be key to maintaining client trust and loyalty.
What Industry Experts Are Saying
While this move has been welcomed by members of the industry, our own Chris Raymond was asked to weigh in on the Broker Daily article and has warned other brokers that “these appointments warrant close attention, as they could influence the way these banks engage with the broker channel.”
Meanwhile, key industry associations like the Mortgage & Finance Association of Australia (MFAA) and the Finance Brokers Association of Australia (FBAA) are closely watching these developments. They are expected to advocate for transparency and fair broker commission structures, but brokers should still stay proactive and pay close attention to any shifts in policy.
What Should Brokers Do Next?
If you’re a broker, now is the time to prepare. Here’s how you can stay ahead and make sure these changes work in your favour:
1. Strengthen Your Bank Relationships
Start scheduling meetings with your Business Development Managers (BDMs) to discuss key updates. Ask about any upcoming policy changes, potential adjustments to commission structures, and the level of support brokers can expect moving forward.
2. Diversify Your Lender Panel
Relying on a single lender can be risky, especially if lending criteria become stricter. Expanding your options by working with regional banks, non-bank lenders, credit unions, and fintech mortgage providers can help ensure you always have alternatives to secure deals for your clients.
3. Embrace Technology
Using AI-powered loan tools and CRMs can make your job easier by speeding up loan processing, cutting down paperwork, and keeping clients updated in real-time. The right technology helps you work more efficiently and provide a better experience for your clients.
4. Stay Informed & Engage with Industry Groups
Keep an eye on updates from MFAA and FBAA, as they will be the first to push for transparency and advocate for brokers as these leadership changes take effect.
What These Leadership Changes Mean for Home Loans and Borrowers
While these leadership shifts at Commonwealth Bank and Westpac directly affect mortgage brokers, borrowers may also see changes in home loan offerings, lending criteria, and overall borrowing experiences. These changes could impact loan accessibility, interest rates, and repayment options, making it essential for borrowers to stay informed.
Banks may refine their mortgage products, either enhancing broker-exclusive loans or shifting toward direct-to-consumer lending, which could alter how borrowers secure financing. Lending policies may become stricter, with tougher affordability tests, more paperwork, and higher requirements for self-employed borrowers, especially under ASIC and APRA regulations.
If you’re buying your first home or refinancing your existing loan, understanding these shifts will help you make better financial decisions.
Speak to our mortgage broker today to understand how these changes could affect you and secure the best loan for your needs.
Final Thoughts – The Future of Mortgage Broking in Australia
With Commonwealth Bank and Westpac bringing in new third-party distribution leaders, Australia’s mortgage industry is entering a new phase. These changes could create exciting opportunities, such as stronger broker support and new loan products, but they might also come with stricter lending rules and increased competition from direct bank channels.
The brokers who stay informed, adapt quickly and position themselves as go-to experts will be the ones who thrive in this evolving landscape. Now is the time to be proactive by reaching out to your bank BDMs for updates, staying informed with industry news, and preparing for any policy changes that could impact your business.
This is a big moment for mortgage brokers, and those who take action now will be the ones who come out ahead.
If you want to stay informed and ready for these changes, connect with Unconditional Finance, your trusted mortgage brokers in Sydney. Let’s make sure you’re prepared for what’s next!
Frequently Asked Questions
Leadership changes in major banks are not uncommon, but each transition comes with its own strategy. In the past, restructuring has often led to changes in broker engagement, lending criteria, and technology adoption. Some shifts have strengthened broker relationships, while others have leaned toward direct-to-consumer lending. It remains to be seen how this round of leadership changes will play out, but brokers and borrowers should stay informed and prepared for potential adjustments.
The best approach is to stay informed and proactive. Brokers should maintain strong relationships with lender BDMs, diversify their lender panels, and keep an eye on industry updates from groups like MFAA and FBAA. Borrowers should assess their loan options sooner rather than later, especially if they’re considering buying or refinancing, as lending criteria and interest rates could shift.
It’s possible. If Commonwealth Bank and Westpac tighten lending criteria or reduce broker engagement, brokers may look to non-bank lenders that offer more flexible lending solutions. Non-bank lenders often provide alternative financing options, lower deposit requirements, and greater flexibility for self-employed borrowers, making them an attractive choice if major banks become more restrictive.
While leadership changes don’t directly impact interest rates, they can influence how aggressively a bank competes in the market. If the new leadership pushes for stronger broker partnerships or increased home loan market share, we might see more competitive rates or special offers. On the other hand, if banks focus on risk management and compliance, they may tighten lending criteria, which could impact interest rate policies.
If banks prioritise direct-to-consumer lending, borrowers might see fewer broker-exclusive loan products and limited access to personalised mortgage advice. However, brokers remain a crucial part of the lending ecosystem by offering unbiased comparisons, access to multiple lenders, and personalised financial guidance. Even if major banks shift their focus, borrowers will still have plenty of options through non-bank lenders, credit unions, and specialised loan providers.
