Most Australians now use a mortgage broker for their home loan. According to industry figures, brokers have written around three-quarters of new residential loans in recent years. But plenty of people still go straight to their bank. Here's an honest comparison.
Choice
Bank: You get that bank's products only. If its policy doesn't suit your situation, or its rate isn't competitive, you'd need to start again elsewhere.
Broker: A broker can compare products from a panel of lenders, including major banks, smaller banks, credit unions and non-bank lenders.
Legal duty
Since January 2021, mortgage brokers have been legally required to act in your best interests under the Best Interests Duty in the National Consumer Credit Protection Act. If there's a conflict between what's best for you and what's best for the broker, the broker must prioritise you.
Bank lenders must meet responsible lending obligations, but they're acting for their employer, not for you.
Cost
Most brokers are paid by the lender when your loan settles, through upfront and trail commissions. The lender pays this regardless of whether you came through a broker or not, so your rate isn't usually higher for using one.
Some brokers charge a fee for complex loans. If a fee applies, the broker must tell you in writing beforehand.
Policy knowledge
This is where brokers often add the most value. Lenders differ widely on:
- Self-employed income
- Casual and contract work
- Parental leave
- Credit history
- Property types and postcodes
- Living expense assessment
A broker matches you with a lender whose policy fits, which can be the difference between approval and decline, or tens of thousands of dollars in borrowing power.
Service
Bank: Your lender's staff may change, and you deal with the bank's processes.
Broker: You usually deal with one person from application to settlement. Your broker chases the lender, explains each step and reviews your loan after settlement.
When going direct to a bank can make sense
- You have a simple situation and already know your bank offers a great rate
- You want to bundle accounts, cards and loans with one institution
- You've been offered a special internal rate
Questions to ask any broker
- How many lenders are on your panel?
- How are you paid for this loan?
- Why are you recommending this lender over others?
- Will you review my loan after settlement?
Frequently asked questions
Will a broker get me a better rate than my bank?
Often, yes, because brokers know which lenders are offering the sharpest pricing and can negotiate. But not always. A good broker will tell you if your bank's offer is best.
Do brokers only recommend lenders that pay higher commissions?
Commissions are broadly similar across lenders, and the Best Interests Duty requires brokers to put your interests first.
Can a broker help after settlement?
Yes. At Finfident, we review your loan regularly and help with refinancing, top-ups and rate negotiations.
Want an independent comparison? Call Finfident on 0424 545 654. We'll tell you honestly how your bank's offer stacks up.
This article is general information only and doesn't take into account your objectives, financial situation or needs. Figures, rates and scheme rules are current as at October 2026 and can change. Finfident Finance Brokers (ABN 94 679 280 801) is Credit Representative 569374 of Outsource Financial Pty Ltd (ACN 131 090 705), Australian Credit Licence 384324.