Going straight to your bank for a home loan feels simple. But is it the best move? Here's an honest look at what a broker offers — and when you might be better off going direct.
- A bank can only offer its own products; a broker compares 40+ lenders on your behalf.
- Brokers are paid by the lender — using one typically costs you nothing.
- Since 2021 brokers operate under a Best Interests Duty; bank staff have no such obligation.
- Complex situations — self-employed, credit issues, low deposit — are where broker lender-matching matters most.
When it's time to get a home loan, most Australians default to calling their bank. It's familiar, it feels simple, and you already have an account there. But familiarity and convenience don't always translate into the best outcome.
What Does a Mortgage Broker Actually Do?
A mortgage broker acts as an intermediary between you and lenders. They have access to a panel of lenders — typically 20-40+ — and compare products, prepare applications, and manage the process on your behalf. Brokers are paid by the lender when your loan settles and are legally required to act in your best interests.
Access to Lenders
Going direct to a bank: You see that bank's products only.
Using a broker: You see options across multiple lenders, including the major banks, regional lenders, credit unions, and specialist non-bank lenders. Some lenders only distribute through the broker channel — you can't access their products directly.
In a competitive market, a 0.2-0.5% rate difference on a $700,000 loan is worth $7,000-$14,000 over five years.
Expertise and Advocacy
A bank's loan specialist represents the bank. A mortgage broker represents you. Brokers know how different lenders assess specific borrower types — the self-employed, investors, those with previous credit issues, and more.
Does a Broker Cost You More?
No. Brokers are paid by the lender, not by you. The interest rate on a loan arranged through a broker is typically the same as going direct — often lower, because brokers can negotiate and access discounted products. ASIC's mortgage broker page explains the regulatory requirements brokers must meet.
When Going Direct to a Bank Makes Sense
If you have a simple application and your bank has a product that's genuinely competitive, going direct is perfectly fine. The problem is you can't know your deal is sharp without comparing. A broker comparison is free either way.
The Broker Advantage in Numbers
In Australia, over 70% of all new home loans are now arranged through mortgage brokers. Moneysmart's overview of mortgage brokers is a useful independent reference.
Finding the Best Mortgage Broker Near You
Look for MFAA or FBAA membership, an ACL or authorised credit representative status, transparent commission disclosure, and access to 30+ lenders. Sam Elvitigala at Wiseman Financial Solutions is an MFAA member, operates under ACL 391209, and covers Western Sydney and surrounding areas. Book a free consultation today.
Frequently Asked Questions
Are mortgage brokers regulated in Australia?
Yes. Mortgage brokers must hold an Australian Credit Licence or be an authorised credit representative. They are regulated by ASIC and must comply with responsible lending obligations and the Best Interests Duty.
Does using a broker affect my chances of approval?
A good broker improves your chances by matching you with the most suitable lender and ensuring your application is complete and well-presented. This is especially important for complex applications.
