Using a mortgage broker is now very much the norm for Australian home buyers. More than four out of five new home loans (81.0%) went through a broker in the March quarter of 2026, according to the Mortgage and Finance Association of Australia (MFAA), which is a new record market share.
With so many lenders, loan types and features to weigh up, borrowers are increasingly handing the comparing, negotiating and paperwork over to the experts. So, before you start the application process, it’s worth doing your due diligence to determine whether using a mortgage broker is the best option for you.
What is a mortgage broker?
A mortgage broker is someone who helps you find and arrange a home loan by dealing with lenders on your behalf. They get to know your finances and what you’re after, which allows them to recommend options from their panel of lending partners that suit you.
Brokers have to act in your best interests when they recommend a loan and they’re regulated by the Australian Securities and Investments Commission (ASIC). If there’s ever a clash between what’s good for them and what’s good for you, your interests have to come first. For example, they can’t recommend a lender just because it pays them more.
What does a mortgage broker do?
A mortgage broker takes care of most of the legwork involved in getting a home loan, from working out what you can borrow through to settlement. Here’s what that usually looks like:
- Compare lenders and loans: they check options across their panel of lenders, so you aren’t stuck with whatever one bank has on offer. That includes comparing fixed rate, variable rate and split home loans, depending on what you’re after.
- Work out your borrowing power: they talk through your situation and give you a realistic idea of how much you can borrow, so you know your budget.
- Negotiate on your behalf: they can use their relationships with lenders to push for a better interest rate, lower fees and more favourable conditions. They can also help you add features like a redraw facility or offset account to your package.
- Prepare and submit your application: they tell you what you need to provide, put your application together and lodge it with the lender.
- Manage the process: they keep things moving from application and approval right through to settlement.
- Answer your questions: they explain how everything works and are on hand if you get stuck.
What information does a broker need for my mortgage application?
Your broker needs a clear picture of your finances and what you’re after, so they can match you with the right lenders and get your application ready. Here’s what they’ll usually ask for:
- About you: ID such as your passport or driver’s licence, plus details like your place of employment and any dependants.
- Your income: at least your last two consecutive payslips or, if you’re self-employed, your last one to two tax returns and business profit and loss statements.
- Your spending and savings: three to six months of transaction and savings account statements, which show how you manage your money day to day.
- Your assets and debts: what you own, such as property, vehicles and investments, and what you owe, such as credit card and their limits, buy now pay later accounts and other loans.
- Your deposit and the property: how much you’ve saved, how much you want to spend and whether you’re buying to live in or invest, plus the contract of sale once you’ve signed one.
- What you want from your loan: your list of must-haves and nice-to-haves, such as making extra repayments or having an offset account.
Every lender has its own requirements, so your broker will confirm exactly what’s needed once they’ve compared your available options.
How do mortgage brokers get paid?
Most mortgage brokers are paid a commission by your lender, not by you. These commissions are regulated under the National Consumer Credit Protection Act 2009. There are two types:
- Upfront commission: a one-off payment when your loan settles, generally around 0.65% to 0.70% of the loan amount.
- Trail commission: an ongoing payment for as long as you have the loan, typically 0.15% a year of the outstanding balance, paid monthly.
Both are worked out after taking off any money sitting in your offset account. On a $700,000 loan, a 0.65% upfront commission comes to $4,550 (excluding GST). If you had $75,000 in an offset account at settlement, it’s calculated on $625,000 instead, which brings it down to $4,062.50. The trail commission on that same $700,000 loan starts at around $1,050 a year and shrinks as you pay the loan down.
If you pay out or refinance your loan soon after settlement, typically within 18 months to two years, the lender can take back some or all of the upfront commission from the broker. That’s known as clawback, and by law your broker can’t pass the cost on to you.
Some brokers also charge a fee directly, such as when your situation is more complicated or the loan is smaller. They have to give you a quote to sign before they can ask for payment and any fee should be clear upfront. These are rarer today, though, with commissions comfortably the most common way for brokers to be paid.
Do mortgage brokers need any qualifications?
Yes, mortgage brokers need a Certificate IV in Finance and Mortgage Broking as a minimum, according to the Finance Brokers Association of Australia (FBAA).
They also have to be licensed to help you with credit, which means holding an Australian Credit Licence (ACL) or being a credit representative of a licence holder, such as their employer. Anyone offering home loan help without one of these is operating illegally and should be avoided.
Joining an industry body isn’t a legal requirement, but it’s usually needed to get accredited with lenders. Brokers typically join either the MFAA or the FBAA, with each setting its own standards. The MFAA goes a step further than the FBAA, requiring a Diploma of Finance and Mortgage Broking Management, which brokers who start with a Certificate IV must complete within 12 months of joining.
Mortgage broker vs bank
The main alternative to going through a broker is to simply go straight to a bank. You can see the key differences between the two in the table below:
| Mortgage broker | Bank | |
|---|---|---|
| Loans on offer | A panel of lenders | Its own products |
| Comparing options | Done for you | Up to you |
| Negotiating | On your behalf | Done by you |
| Application | Prepared and lodged for you | Completed by you |
| Best suited to | Comparing lenders or getting help with the process | Simple loans with a lender you already know |
Going direct to a bank can suit you if:
- You already bank with the lender and like what they offer
- Your situation is simple and you’re comfortable comparing options and negotiating yourself
- You want a lender that only deals direct
A broker’s panel isn’t the whole market, though, and some lenders only deal direct. Checking what your own bank can offer alongside a broker’s comparison helps give you the full picture.
How to choose the right mortgage broker
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Check their licence
Look your broker up on ASIC’s registers to make sure they hold, or work under, an ACL, which will only take a few minutes. A broker who isn’t listed is a major red flag. You should also ask whether they hold their Certificate IV or, if applicable, Diploma of Finance and Mortgage Broking Management.
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Ask how many lenders are on their panel
Panels vary a lot from broker to broker. More lenders means more options to compare, so ask how many they have and whether any major lenders are missing. You can usually find this on their website or just ask them directly. Savvy counts X lenders among our panel.
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Read the reviews
A broker can look great on paper, but it’s worth seeing what past customers have to say. Check Google reviews and other independent review sites to get a feel for what they’re like to deal with.
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Ask how they’re paid
Brokers have to give you a credit guide before they help you, which covers things like how they’re paid. It’s worth asking which lenders pay them what, and whether they charge any fee on top. Any fee should be clear from the start.
Why apply for a home loan with Savvy
Should I use a mortgage broker?
A broker suits plenty of borrowers, but going through one isn’t automatically the best option for everyone. Here are some of the key pros and cons of mortgage brokers to consider:
Pros
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Wider comparison
A broker checks loans across their panel of lenders instead of just one lender’s range, giving you more options than going straight to your bank.
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Support and know-how
Brokers are there to answer any questions you have about the application process and how it works, which is especially handy for first-time buyers.
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Negotiating power
Their relationships with lenders can help them push for a better rate, lower fees and more favourable conditions than you’re likely to get on your own.
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Usually no cost to you
Most brokers are paid by the lender, not by you, so you usually won’t need to pay for their services directly.
Cons
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Panel may be limited
No broker can compare every lender or product in the market, with some lender panels being smaller than others.
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Lender-paid commission
Because lenders pay brokers, it’s worth asking whether their pay differs between lenders. They’re required to act in your best interests, though.
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Uneven experience
Qualifications, experience and panel size vary between brokers, whether they work independently or for a larger broking business.
Ultimately, whether a broker is right for you comes down to your individual circumstances. If you want help comparing lenders or aren’t sure where to begin, a broker is usually a good place to start. There’s no obligation to proceed once you reach out and discuss your options.
