Plain words, no jargon
What is a mortgage agent?
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.
What they actually do
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
What you're paying for
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.
When you need one
- You're buying your first home and don't know what you can borrow
- You're self-employed or your income isn't a simple payslip
- You want to compare more than the bank you already use
- You're refinancing and suspect you're on a lazy rate
- You're buying an investment property or through an SMSF
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.
Common questions
What does a mortgage broker cost?
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.
Is a mortgage broker really on my side?
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.
Will using a broker hurt my credit score?
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.
Do brokers have access to every lender?
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.
Broker or bank - which gets a better rate?
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.
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