BOQ's Mortgage Book Shrinks as Major Banks Pull Back from Brokers — What Borrowers Should Know

BOQ's Mortgage Book Shrinks as Major Banks Pull Back from Brokers

Bank of Queensland (BOQ) has reported a significant decline in its home loan balances, with the bank now pivoting toward a proprietary digital channel and pulling back from the mortgage broker market. The development is the latest sign that some major banks are strategically reducing their exposure to broker-originated loans.

What BOQ Reported

According to The Adviser (April 23, 2026), BOQ's mortgage book has tumbled in recent periods, with the bank actively choosing to prioritise direct digital loan origination over third-party broker distribution. This means BOQ is writing fewer loans through brokers — and the loans it does write are increasingly coming through its own digital platform.

The bank's reasoning is partly margin-driven: broker-originated loans typically carry higher commission costs, and banks competing on rate in this channel can find themselves with lower-quality margins at scale.

Why Banks Pulling Back Creates Opportunity

When major banks reduce their broker presence, the impact cascades to borrowers. Those who don't qualify through the bank's proprietary channel — including self-employed applicants, new migrants, or borrowers with complex income structures — may find fewer options available to them from that institution entirely.

This is exactly the gap that non-bank lenders fill. MPFG Capital specialises in helping borrowers who fall outside the rigid lending matrices of major banks, with products designed for:

• Self-employed and alt doc borrowers (using BAS statements or accountant letters)
• Borrowers with non-standard income structures
• Migrants and PR holders with limited Australian credit history

The Broader Market Trend

BOQ is not alone. Multiple major banks have at various points reduced broker accreditation, tightened serviceability buffers, or restricted certain borrower profiles. According to MFAA data, brokers now write over 74% of all new residential mortgages in Australia — largely because borrowers are finding it harder to get approved through bank proprietary channels.

Non-bank lenders, by contrast, have continued to grow their broker relationships and expand their product ranges. This bifurcation of the market creates clearer lines: banks serving straightforward, high-income, full-documentation borrowers; non-banks serving the rest.

MPFG Capital's Position

MPFG Capital works exclusively through the broker channel and remains committed to growing broker partnerships. We believe brokers provide better outcomes for borrowers because they have visibility across multiple lenders — including non-bank options that banks would never recommend.

If you've been turned down by BOQ or another major bank, or your broker has indicated that your profile is outside standard bank parameters, exploring non-bank alternatives is a logical and often successful next step.

General information only. Not financial advice. MPFG Capital ACL 553698.