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The latest Broker Pulse survey, conducted between 1 and 14 January 2026 and covering 345 brokers, found that 89 per cent of respondents used at least one non-major bank in December 2025, compared to 78 per cent of brokers who used at least one major bank.
Half of respondents also reported using a non-bank lender.
Product pricing was the leading factor influencing brokers’ choice of non-major banks, cited by 63 per cent of respondents. This was followed by client circumstances at 57 per cent and turnaround times at 28 per cent.
For major banks, client circumstances remained the primary factor for brokers, with product pricing the second most common priority.
Client circumstances overwhelmingly drove brokers’ use of non-bank lenders, with 87 per cent of respondents identifying this as the primary reason for their choice.
The survey found that Macquarie Bank was the most commonly used lender, with 46 per cent of brokers working with the bank in December. This was followed by the big four banks, with ANZ at 44 per cent, Westpac at 39 per cent, Commonwealth Bank at 37 per cent, and National Australia Bank at 32 per cent. Firstmac was the most used non-bank lender, used by 10 per cent of brokers.
The survey also indicates that several non-major banks are delivering a strong broker experience. Great Southern Bank and UBank led the group, each achieving a three-month average broker experience rating of 93 per cent. P&N Bank, MyState, and Bank Australia also performed well, with ratings of 90 per cent, 88 per cent, and 87 per cent, respectively.
Macquarie again led the major banks, recording an average broker experience rating of 96 per cent.
Turnaround times still high
The survey found that turnaround times were still running high across all sectors. For non-major banks, the average time to reach an initial credit decision was 6.6 business days. While this is down from the October 2025 peak of 7.6 days, it remains higher than December 2024, when turnaround times averaged 4.7 days.
Brokers reported UBank as the fastest non-major bank in December, with an average turnaround time of three business days. MyState and Beyond Bank followed at five business days, while Newcastle Permanent recorded the longest turnaround time at 16 days.
Major banks posted faster overall turnaround times, averaging 4.8 business days, although this was still higher than December 2024, when turnaround times averaged 3.4 days.
Speaking to Broker Daily, brokers have noted that the launch of the expanded 5 per cent Deposit Scheme has caused blowouts in the turnaround times for many loans.
Macquarie Bank again led on speed, with an average turnaround time of two business days, followed by Bankwest and St.George Banking Group at four days. The remaining competitive set recorded average turnaround times of between five and seven days.
For non-bank lenders, turnaround times have deteriorated to an average of 6.7 business days, continuing an upward trend from January 2025, when average turnaround times were 3.7 days.
Michael Johnson, director at Agile Market Intelligence, said: “When we see average turnaround times creeping up to five, six, or seven days, we need to remember that averages mask the tail. A portion of applications will inevitably take eight, nine, 10 days or longer to process.
“At those levels, borrower anxiety becomes very real – particularly for those with tight settlement deadlines. It’s critical that both lenders and brokers work closely together to set and manage customer expectations from the outset.”
[Related: Rate fears dominate as consumer confidence weakens in January]