Home LoansMakeMyLoan brokers compare dozens of lenders and owe you a Best Interests Duty — your bank doesn't.
Most Australian borrowers now arrange their home loans through a mortgage broker rather than walking into a bank branch — yet plenty of people still are not quite sure what a broker actually does, who pays them, and whether the service is genuinely on their side. Straight answers to all three, below.
A mortgage broker is a credit professional who works for you across a panel of lenders rather than for any single bank. The job, end to end:
Brokers must be licensed (or act as credit representatives under a licence) and operate under the National Consumer Credit Protection Act, with the same responsible lending obligations as lenders.
Since 2021, mortgage brokers have been subject to a legislated Best Interests Duty (BID): when recommending a home loan, a broker must act in the best interests of the customer, and where there is a conflict, prioritise the customer's interests over their own. Bank lending staff are not subject to this duty — a bank employee can only offer that bank's products and has no obligation to tell you a competitor would suit you better. That does not make bank staff bad actors; it means the two channels have structurally different obligations. A broker who cannot find you a suitable loan is required to say so, and a broker recommending one loan over another should be able to explain why it is in your interests — ask, and expect a clear answer.
This is the part everyone should understand before using any broker, so here it is plainly. For standard residential home loans, brokers are typically paid by the lender, not by you — an upfront commission when the loan settles and a smaller ongoing trail commission while the loan remains in place. In most cases there is no fee charged to the customer for arranging a standard residential loan, though practices vary and some brokers do charge fees for complex or low-value scenarios — any fee must be disclosed and agreed before you commit. Commissions themselves must be disclosed to you, and reforms following the banking Royal Commission removed the structures that most distorted advice (such as volume bonuses). Two honest caveats: commission only exists on loans from lenders the broker is accredited with, so a broker's "market" is their panel, not every lender in Australia; and because commission is broadly similar across mainstream lenders, the financial incentive to steer you to one big lender over another is limited — but you are entitled to ask any broker exactly what they will be paid on your loan, and a good one will show you.
Going direct can be perfectly fine — particularly if your situation is simple, your bank's policy suits you, and you have compared alternatives yourself. The trade-offs:
Free, instant, and no details required — see roughly what lenders could approve for you.
Brokers help most when the answer is not obvious:
If your situation is genuinely vanilla — strong PAYG income, big deposit, clean credit — a broker's value is more about pricing, structure and saved legwork than about getting approved.
A proper first meeting costs you nothing but an hour: you talk through your goals and finances, the broker runs a preliminary assessment, explains the realistic lender options and their reasoning, and gives you a document checklist. There is no obligation, and nothing is lodged or recorded on your credit file at that stage. Treat it as a second opinion even if you intend to go direct — worst case, you walk away better informed.
If you want a clear read on what you can borrow, which lenders fit your situation, and what it will cost — asked and answered plainly — get in touch or start online whenever you are ready.
For standard residential home loans, usually not — the broker is paid commission by the lender when the loan settles. Some brokers charge fees for complex or unusual scenarios, and any fee must be disclosed and agreed with you upfront. Ask before you engage, and expect a straight answer.
A legal duty, in force since 2021, requiring mortgage brokers to act in the best interests of the customer when recommending home loans, and to prioritise the customer's interests if a conflict arises. Bank staff selling their own bank's loans are not subject to this duty.
No — you pay the lender's advertised or negotiated rate either way, and brokers frequently obtain discretionary pricing below the advertised rate. The commission is a distribution cost lenders pay in place of running that sale through a branch.
No. Brokers compare lenders on their accredited panel, which for established brokers typically spans major banks, regional banks and non-bank lenders. It is a wide sample of the market, not the whole market — you can ask any broker which lenders are on their panel.
Often, yes — for pricing negotiation, loan structuring and saved legwork — but the case is strongest when something is non-standard: variable income, self-employment, small deposit, probation or credit history issues, where lender policy selection genuinely decides the outcome.
No. A preliminary conversation and assessment happens off your credit file. An enquiry is only recorded when an application is actually lodged with a lender, which happens with your consent after you have chosen the loan.
This article is general information only and doesn't consider your personal objectives, financial situation or needs — it isn't personal credit advice, and lending criteria, rates, fees and government schemes change. Before acting, speak with a licensed MakeMyLoan broker or credit representative who will assess your circumstances and provide a credit guide before any credit assistance is given.
