In the June 2026 quarter, mortgage brokers arranged a record 81.6% of all new home loans in Australia, according to the MFAA. That’s up from 53.9% in 2018. But “most people do it” isn’t a reason on its own, so here’s the honest comparison, including when I’d tell you to go straight to a bank.
The real difference: who they work for
A bank’s lender works for the bank and can only offer that bank’s loans. A broker compares loans across a panel of lenders and, since 2021, has been legally bound by a Best Interests Duty: we must act in your best interests and put them ahead of our own.
| Going direct to a bank | Using a broker | |
|---|---|---|
| Choice | One bank’s products | A panel of lenders (40+ on mine): majors, regionals and non-banks |
| Legal duty | Responsible lending | Responsible lending plus Best Interests Duty |
| Cost to you | No fee | No fee for standard home loans. The lender pays |
| Unusual situations | One credit policy: yes or no | Matched to the lender whose policy fits (self-employed, visa holders, professionals) |
| Your credit file | Each bank you try adds an enquiry | Assessed first, then usually one application |
| After settlement | Retention team if you ask | Your broker can re-check your rate against the market |
Why policy matters more than rate
Rates between lenders are often close. Credit policy isn’t. Lenders differ on how they count overtime, bonuses, rental income and self-employed income, how they treat visa holders, and who gets an LMI waiver. The same person can get a very different borrowing power from one lender to the next. Knowing those differences before applying is most of a broker’s job.
When going direct can make sense
- Your own bank is offering sharp pricing and package benefits you value, and you’ve already compared rates.
- Your situation is simple: stable PAYG income, a solid deposit, a standard property.
- The loan you want is from a direct-only lender that doesn’t work with brokers.
Even then, a free second opinion costs nothing. If your bank’s offer is the best one, I’ll tell you.
Questions to ask either way
What’s the comparison rate, not just the headline rate? What fees apply each year? Is there a full offset account? What happens when a fixed or introductory rate ends? And for a broker: how many lenders do you compare, and why this one?
Common questions
Is a mortgage broker’s rate higher than going direct to the bank?
No. The lender pays the broker’s commission from its own margin, so the rate is the same as going direct and a broker can often negotiate a sharper one.
Do mortgage brokers have access to every lender?
No broker has every lender. Each works with a panel, which varies in size. It is worth asking how many lenders a broker compares and why they recommend a particular one.
Will using a broker hurt my credit score?
Usually it helps. A broker assesses your situation against lender policy first and then normally applies once, rather than you applying to several banks and adding an enquiry each time.
What is the Best Interests Duty?
Since 1 January 2021, mortgage brokers in Australia must act in the best interests of their clients and prioritise the client’s interests over their own when recommending a loan. Bank staff are not bound by this duty.
Sources: MFAA, Banking Day, ASIC RG 273. General information only, not financial or credit advice. Current at 24 September 2026.
