Buying a home is one of the most significant financial decisions you’ll make in your lifetime. For many Australians—especially first home buyers—the home loan process can feel overwhelming. That’s where a mortgage broker comes in.
A great mortgage broker does more than just compare loan products. They advocate for you, help you avoid hidden traps, and work to get you the best deal possible. But with so many brokers to choose from, how do you know which one is right for you?
In this guide, we break down everything you need to know to confidently choose the right mortgage broker in Australia.
What Is a Mortgage Broker?
A mortgage broker is a licensed professional who acts as an intermediary between you (the borrower) and potential lenders. They work with a panel of banks and lenders to match you with a home loan that suits your financial situation and goals.
Mortgage Broker vs. Bank: What’s the Difference?
- Bank loan officers only offer products from their bank.
- Mortgage brokers have access to multiple lenders, giving you a wider choice.
- Brokers often understand which lenders are more likely to approve your application based on your personal situation.
How Mortgage Brokers Get Paid
- Brokers are generally paid a commission by the lender once the loan is settled.
- In most cases, their service is free to the borrower.
- Some may charge a fee for complex cases—this must be disclosed upfront.
Why Use a Mortgage Broker Instead of a Bank?
Engaging a mortgage broker can be one of the smartest financial moves you make—especially if you’re navigating the process for the first time.
Key Benefits of Using a Mortgage Broker:
- Wider Access to Loan Products: Compare 20–40+ lenders, including smaller lenders you may not know about.
- Tailored Loan Solutions: A broker assesses your financial situation and goals to recommend suitable options.
- Higher Chance of Approval: Brokers understand lender policies and can match you with lenders likely to say yes.
- Time Savings: They handle paperwork, negotiations, and loan application follow-up.
- Guidance and Support: Especially helpful for complex situations (e.g. self-employed, low deposit, credit issues).
🧠 According to the MFAA, mortgage brokers now facilitate over 70% of all new residential home loans in Australia.
Key Factors to Consider When Choosing a Mortgage Broker
Not all mortgage brokers are created equal. Here’s what to look for when choosing the right one for your needs:
1. Are They Licensed and Accredited?
- Check that they hold an Australian Credit Licence (ACL) or are a credit representative of a licensed aggregator.
- Verify membership with an industry body such as the MFAA (Mortgage & Finance Association of Australia) or FBAA (Finance Brokers Association of Australia).
- Search ASIC Connect to confirm their registration.
2. How Many Lenders Are on Their Panel?
- Brokers with a broad lender panel give you more options.
- Ask: “How many lenders do you work with?” Ideally, 20 or more.
3. Do They Have Experience in Your Situation?
Look for someone who has helped people like you:
- First home buyers
- Self-employed borrowers
- Investors or upgraders
- Refinancers
4. Are They Independent or Institutionally Aligned?
- Independent brokers tend to offer broader comparisons.
- Some brokers are tied to one or two lenders or part of a bank group. Ask directly.
5. What’s Their Reputation Like?
- Read Google Reviews or search their business name online.
- Ask your real estate agent or conveyancer for referrals.
- Speak to friends or family for recommendations.
6. Are They Transparent About Fees and Commissions?
- Most brokers don’t charge you—but ask anyway.
- They should provide a Credit Quote and Proposal Document detailing how they’re paid.
Important Questions to Ask a Mortgage Broker
Before signing on, ask the following to ensure transparency and fit:
- How many lenders are on your panel?
- Which lenders do you use most often—and why?
- Do you charge the borrower any fees?
- How are you paid?
- Do you have experience working with [first home buyers/self-employed/investors]?
- What happens if I’m not approved—what are my options?
- Can I see comparisons of multiple loan products?
- What support do you provide through settlement?
- Do you help with government schemes (e.g., First Home Guarantee)?
- How often do you stay in touch after the loan is settled?
Red Flags to Watch Out For
Unfortunately, not all brokers act in the borrower’s best interest. Watch out for:
- One-size-fits-all recommendations
- Pushing you toward one lender repeatedly
- Failure to disclose commissions
- Rushing you to sign paperwork
- Lack of clarity on fees and costs
- Unlicensed or unregistered brokers
If something feels off—trust your instincts and walk away.
The Mortgage Broker Process Explained
Understanding what to expect can help you feel confident throughout the loan process.
Step-by-Step Breakdown:
- Initial Consultation – Discuss your needs, income, goals, and borrowing capacity.
- Fact-Find & Assessment – Broker gathers financial info, reviews your credit report, and determines loan options.
- Loan Comparison & Recommendation – They provide multiple options and explain pros/cons.
- Loan Application Submission – Broker prepares paperwork and submits your application.
- Pre-Approval – Conditional approval that allows you to start house hunting.
- Loan Approval & Documentation – Final checks, valuation, and lender signs off.
- Settlement Coordination – Broker works with your solicitor and lender to finalise settlement.
- Ongoing Support – They may review your loan annually or help you refinance down the track.
Do First Home Buyers Need a Mortgage Broker?
Absolutely. First home buyers often face unique challenges:
- Smaller deposits
- Eligibility for first home buyer grants and schemes
- Limited credit history
- Lack of knowledge about the process
How Brokers Help:
- Navigate First Home Guarantee and stamp duty concessions
- Compare lender policies on LMI (lenders mortgage insurance)
- Provide education and step-by-step support
- Increase approval chances with tailored advice
How to Find a Mortgage Broker Near You
If you’re ready to speak to a broker, here are a few ways to find the right one:
1. Personal Recommendations
Ask your friends, colleagues, or real estate agent who they used.
2. Google Search
Search terms like “mortgage broker near me” or “best mortgage broker in [your city].”
3. Use a Broker Directory (Coming Soon)
Finistry is building Australia’s go-to directory for trusted financial professionals. You’ll be able to:
- Browse by suburb or postcode
- Read verified reviews
- Filter by specialisation (e.g., first home buyers, refinancers)
💡 Stay tuned: Finistry will soon help you find the right mortgage broker faster and easier than ever.
Conclusion: Choose the Broker Who Works for You, Not the Bank
Your mortgage is likely the biggest financial commitment you’ll ever make. Choosing the right broker can mean:
- Securing a better interest rate
- Saving thousands over the life of your loan
- Reducing the stress of paperwork and bank jargon
- Improving your chances of approval
Don’t rush into choosing a broker. Ask the right questions, do your research, and make sure they are working for you, not the lender.
FAQs About Mortgage Brokers in Australia
Q1: Are mortgage brokers free to use in Australia?
Yes, in most cases. Brokers are paid commissions by the lender. Any fees charged to you must be disclosed upfront.
Q2: How do mortgage brokers get paid?
Typically through upfront and trail commissions from lenders. Good brokers disclose their commission structure.
Q3: Is it better to go through a broker or directly to a bank?
Brokers can offer more choice and personalised service. Banks only offer their own products.
Q4: How long does it take to get a home loan with a broker?
It depends on your situation and the lender. Generally, allow 2–6 weeks from application to settlement.
Q5: Can mortgage brokers help if I have bad credit?
Yes, many brokers have access to specialist lenders who cater to borrowers with impaired credit.
Ready to Find a Trusted Mortgage Broker?
Whether you’re buying your first home, upgrading, or refinancing, the right mortgage broker can make a huge difference in both your short-term savings and long-term financial wellbeing.
Finistry will soon allow you to search and compare qualified mortgage brokers near you. You’ll be able to:
- See verified reviews
- Compare brokers by expertise and lender panel
- Connect directly through our platform
Are You a Mortgage Broker?
List your business on Finistry to be found by thousands of Australians actively seeking expert help with home loans.
Finistry: Helping Australians Make Better Financial Decisions.
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