Several advisers told TMM Online that direct customers were getting preferential treatment. 

Krish Krishna of Mortgage Suite said there were "major hold ups" in getting home loans approved. 

He said banks were processing direct loans more quickly: "I am also aware of one case where someone got approved within three days by going direct to the branch.

"The problem to some extent is the banks' own doing. The broker hubs have taken control over all business applications as well in the case of ANZ, ASB and Westpac," Krishna added. 

Andy Phillipson of The Mortgage Shop also said there was a big discrepancy in processing times.

"I know of instances where a client got a home loan approved and the contract confirmed before we even got a response from the broker unit. I presented a loan application to one bank, and without a response within a week, the clients went direct to their own bank. They got a full approval within days and the loan was settled within a couple of weeks."

Phillipson is concerned that banks are staying away from non-standard deals.

"Either there is a concerted effort by the banks to reduce the broker-led business, or the lending decisions are governed so much now by a "paint-by-numbers" system that logical deals from advisers that do not fit the pigeon-holes are immediately tossed out."