Westpac doesn’t disclose the amount of business it gets through mortgage advisers, even though other banks do.

Mclean says “the market tends to work at about one-third of business being written through brokers.”

“We think of that through the cycle, as opposed to a particular number that we’re aiming for at any point in time. “

While mortgage advisers “are a very important channel” to the bank, it has no plans to grow the segement.

Westpac chief financial officer Jason Clifton says “We don’t see customers wanting to use brokers more than they have over the last couple of years.”

Like other banks Westpac is increasing its digital offering and expects more business to come through those channels.

In the second half of the bank’s last financial year 27% of sales came through digital channels compared to 18% in the first half of 2016.

In Australia more than 50% of home loans are originated through advisers and ANZ chief executive Shayne Elliott predicted that market share would increase to 70% in the future.

McLean can’t see the same happening in New Zealand. He says the Australian market differs because there are a lot of non-bank lenders who can only use advisers, and Westpac is pushing digital sales.

“We’re not sure whether those market differences will flow through or not.”

“We don’t see ourselves inevitably going down the track which would lead us to the same percentage as Australia, but at the moment and for the foreseeable future, brokers have an important part to play in the market.”

Why no over 80s

Westpac has, for many months, stopped offering mortgages over 80% through advisers. McLean says this is about trying to manage its limits under the Reserve Bank rules.

“The dynamics are such that customers come in for approval, we might have an internal limit of below 10%, and you’re trying to manage that. If the market suddenly slows, what seems to happen is that the over-80s still proceed with their transaction, but the under-80s don’t necessarily, or it’s a different rate.

“So, what we thought we were operating to at a limit can get us closer to breaking it. That’s where we sometimes have to pull a bit harder on the leaver,” he says.