Guide
Why Use a Mortgage Broker?
In the September 2024 quarter, mortgage brokers were responsible for 74.6% of all home loan settlements in Australia – the highest on record. Here's why most Australians choose a broker over going directly to a bank.
74.6%
of home loans via brokers (Sept 2024)
70+
lenders on our panel
$0
cost to you for our service
1,000s
saved on average vs going direct
The Benefits
Why brokers make sense
1. Access to 70+ lenders
Banks can only offer their own products. A broker compares loans from major banks, regional lenders, credit unions, and specialist lenders to find the best fit for your situation.
2. Free service
Brokers are paid by lenders when your loan settles. You get expert advice, loan comparison, and application support at no cost to you.
3. Legal duty to act in your best interest
Under Australian law, mortgage brokers must act in your best interest when providing credit assistance. Bank staff don't have this same legal obligation.
4. Saves you time
We handle the research, paperwork, lender negotiations, and follow-ups. What would take you weeks, we can do in days with our established lender relationships.
5. Expert guidance for complex situations
Self-employed? Multiple properties? Non-traditional income? We know which lenders suit your situation and how to present your application for the best outcome.
6. Ongoing support
Our relationship doesn't end at settlement. We're here for refinancing, rate reviews, and whenever your circumstances change.
Comparison
Broker vs Bank
See how using a broker compares to going directly to a bank.
Mortgage Broker
- Compare 70+ lenders in one search
- Free service (paid by lender)
- Legal duty to act in your best interest
- Handle all paperwork and follow-ups
- Expert advice for complex situations
- Access to non-bank and specialist lenders
- Negotiate rates on your behalf
- Ongoing support after settlement
Direct to Bank
- Only their own products
- Free service
- No legal best interest duty
- You manage your own application
- Generalist staff
- Limited to bank products only
- Standard advertised rates
- Limited post-settlement support
The Best Interest Duty
Since January 2021, mortgage brokers in Australia have a legal obligation to act in your best interest when providing credit assistance. This is called the Best Interest Duty.
What this means for you:
- We must prioritise your interests over our own
- We must recommend suitable products, not just any product
- We must disclose conflicts of interest
- We can be penalised for breaches
Bank staff do not have this:
- Banks can recommend their own products even if not the best fit
- Staff may have sales targets to meet
- No legal obligation to compare with competitors
- Loyalty doesn't guarantee the best deal
When might a bank be better?
We believe brokers are the best choice for most borrowers, but there are situations where going direct could make sense:
Existing customer benefits
Some banks offer loyalty discounts or package deals for customers who hold multiple products.
Simple, straightforward loan
If you're a PAYG employee with a 20% deposit and clean credit, most lenders will approve you.
You enjoy research
If you like comparing products yourself and have the time to do thorough research.
Specific lender relationship
If you have a private banker or strong relationship with a specific lender.
Even in these cases, it's worth getting a broker comparison first – knowing the market helps you negotiate, and our service is free.
Common Questions
FAQs about brokers
How do brokers get paid?
We receive a commission from the lender when your loan settles. This typically includes an upfront commission (0.5-0.7% of loan amount) and a trailing commission (0.15-0.2% annually). These commissions don't affect the interest rate or fees you pay – they come from the lender's marketing budget.
Do brokers have access to all lenders?
Most brokers have access to a large panel of lenders (we have 70+), but not every lender works with brokers. Some smaller lenders are broker-only, meaning you can only access them through a broker. We'll always tell you if there's a product outside our panel that might suit you.
Will using a broker affect my loan approval?
No – in fact, it often helps. Brokers know each lender's criteria and can match you with lenders most likely to approve your application. We also ensure your application is complete and well-presented, reducing delays and improving success rates.
Can I negotiate a better rate myself?
You can try, but brokers often achieve better outcomes. We know the discretionary rates lenders can offer and have established relationships. We also know when to push back and which lenders are hungry for business.
What if I already have a relationship with my bank?
That's fine – we can still include them in our comparison. Often, knowing you're shopping around motivates your bank to sharpen their offer. And if they are genuinely the best option, we'll tell you.
Ready to compare?
Get a free loan comparison from our team
No obligation, no cost. Just expert advice tailored to your situation.