NAB Pushes Proprietary Mortgages as Broker Channel Share Falls — What Australian Home Loan Applicants Need to Know

Key takeaway: NAB's shift toward direct-channel lending signals that major banks are tightening control over their preferred broker relationships, leaving some borrowers — particularly self-employed applicants and those with complex income — with fewer mainstream options unless they look beyond the Big Four.

What NAB's Proprietary Push Actually Means for Borrowers

NAB is sharpening its proprietary mortgage channel — meaning it wants more customers to come directly through NAB's own branches and digital platforms, rather than through mortgage brokers. At the same time, NAB says it is "reserving a premium proposition for selected broker partners," which suggests smaller or independent broker firms may find it harder to successfully place clients with NAB than before.

For borrowers, this creates a two-tier dynamic: those who already have strong NAB banking relationships may still access competitive terms, while others — especially self-employed borrowers, new migrants, or those with complex income structures — may find their NAB applications more difficult to progress through the broker channel.

Brokers currently originate about 50% of all new home loans in Australia. While the overall broker channel remains significant, NAB's strategic pullback means some borrowers who would previously have been placed with NAB via a broker may need to explore other options.

"NAB is sharpening its proprietary mortgage push while claiming that it is reserving a premium proposition for selected broker partners." — The Adviser, 5 November 2026

Why This Matters More for Self-Employed and Complex-Income Borrowers

Brokers are especially valuable for borrowers who do not fit the standard bank template — the self-employed, contractors, those with multiple income streams, or new migrants without long Australian credit histories. Brokers can present a complex application to multiple lenders simultaneously, finding the best fit rather than relying on a single bank's criteria.

As NAB reduces its openness to broker-originated loans, complex-income borrowers may face:

• Fewer choices among the major banks via the broker channel
• Reduced negotiating leverage if only direct-bank applications are considered
• Potential delays or additional scrutiny when applying directly without broker expertise

Non-bank lenders are not constrained by the same channel strategy shifts. MPFG Capital, for example, works directly with borrowers and their brokers to assess applications that may not meet major bank criteria.

The Broader Trend: Big Banks Pulling Back, Non-Banks Stepping In

NAB's move is part of a broader pattern across the lending market. Several major lenders have been rationalising their broker relationships over recent quarters, while non-bank lenders have recorded strong origination volumes by picking up borrowers that banks are increasingly less flexible about serving.

This trend is particularly notable for the self-employed segment. As of November 2026, the RBA cash rate sits at 4.85% — an 18-year high — and banks are under pressure to tighten their own credit books. Non-bank lenders, which are not subject to the same APRA capital requirements as ADIs, often have more room to assess applications on a case-by-case basis and can offer faster turnaround for well-presented files.

What This Means for MPFG Borrowers

If you have been turned down by NAB or find that your broker is struggling to place your loan with a major bank, it may be worth exploring MPFG's range of home loan and refinancing products. MPFG offers Alt Doc lending for self-employed borrowers, easy refinancing up to $7.5 million, and tailored commercial and bridging finance for those who need flexibility beyond what the Big Four currently provide.

The banking landscape is shifting. For many Australian borrowers — particularly self-employed applicants, new migrants, and those with non-standard income — non-bank lenders now offer a faster and more flexible path to approval than the major banks.

FAQ

Why is NAB reducing its reliance on mortgage brokers?

Banks strategically adjust their channel mix to manage costs and maintain direct customer relationships. NAB's push into proprietary lending is partly about preserving margins and building direct customer loyalty, rather than sharing that relationship with brokers. This is a business strategy decision, not a reflection of any change in overall lending appetite.

Does this affect borrowers who already have a loan with NAB?

If you are already a NAB customer with an existing mortgage, this channel strategy shift is unlikely to affect your current loan terms or relationship. However, if you are seeking to refinance or apply for a new loan through a broker, you may find NAB's processes tighter or processing times longer than in previous years.

What are the alternatives if a major bank rejects my broker-submitted application?

Non-bank lenders are the most common alternative. They assess applications independently of APRA's standard credit guidelines, can consider alt doc income verification, and often process applications faster. Speaking to a broker who regularly works with non-bank lenders is a good starting point for understanding your full range of options.

This article is general information only and does not constitute financial or credit advice. All applications are subject to credit assessment by MPFG Capital (ACL 553698).