Plain words, no jargon
A mortgage broker finds and arranges your home loan - across many lenders, not one.
A bank can only offer you its own products. A broker holds an accreditation with a panel of lenders, compares what you'd actually be approved for, and handles the application. Since 2021 they've been under a legal best-interests duty - a bank's staff are not.
Compares the market
Dozens of lenders rather than the one whose sign is on the door
Works out your borrowing power
Before you fall in love with something you can't finance
Handles the application
Paperwork, valuations, lenders mortgage insurance, the lot
Chases the lender
Follows up so you're not on hold explaining yourself again
Pre-approval before you bid
Bidding without knowing your real limit is how people either miss out or overcommit.
Access to more lenders
Smaller lenders and non-banks often price better than the big four, and rarely advertise.
Someone who knows the quirks
Self-employed, casual income, a HECS debt or a recent job change - each lender treats these differently.
And honestly, when you don't: if you have a straightforward salaried income, a large deposit and an existing relationship with a bank giving you a genuinely sharp rate, going direct is perfectly reasonable. Compare it against one broker conversation before you sign.
In Australia most brokers charge the borrower nothing. The lender pays them an upfront commission when the loan settles, plus a smaller trail commission each year it stays open. Some brokers charge a fee for complex or commercial work, and they must disclose any fee and their commission to you in writing before you proceed.
Legally, yes. Since January 2021 Australian mortgage brokers have been subject to a best-interests duty - they must act in your best interests and put your interests ahead of their own where there's a conflict. Bank staff selling their employer's products are not covered by that duty. It's a genuine difference, not marketing.
Applying to several lenders at once can, because each application leaves a mark. A good broker avoids that by checking your position against lender policy first and submitting to one lender they believe will approve you, rather than scattering applications.
No. Each broker has a panel of lenders they're accredited with, and panels differ. It's a fair question to ask up front - how many lenders are on your panel, and are the big four on it? A broker must also tell you the top lenders they've placed business with.
Neither automatically. A broker's advantage is comparison and knowing which lender's policy fits your situation, which matters most when your income or deposit isn't textbook. If your circumstances are simple, a bank may match anything a broker finds. Getting both numbers costs you nothing.
Free for you, always - agents pay a flat subscription, never a cut of your deal.