What a broker does that a bank can't
- Compares loans from many lenders, not just one. I compare more than 60
- Knows which lenders' policies suit your income, deposit and property
- Negotiates pricing and handles the application, valuation and paperwork
- Keeps an eye on your loan after settlement. I review every client's loan twelve months later
How mortgage brokers get paid
The lender pays the broker, not you. Brokers receive an upfront commission when the loan settles and a smaller ongoing trail commission while the loan is active, both based on the loan amount. Commission rates are broadly similar across lenders, and brokers must tell you how they're paid.
The best interests duty
Since 2021, mortgage brokers have been legally required to act in your best interests and prioritise your interests over their own. Bank staff selling their own bank's products don't have the same obligation to compare the market.
When going direct can make sense
If your situation is simple, you're happy with your current bank and it offers you a sharp rate, staying put can be fine. It's still worth checking what the market would offer, because your bank's best offer for a loyal customer isn't always its best offer.
Questions people ask
Is it better to use a mortgage broker or go to a bank?
A broker compares many lenders and must act in your best interests, while a bank offers only its own products. For most people, comparing is worthwhile.
How do mortgage brokers get paid?
By the lender, through an upfront commission when the loan settles and an ongoing trail commission. There's usually no cost to you.
Do mortgage brokers get better rates?
Often, because brokers can request pricing discounts from several lenders and know which lenders are sharpest for your situation.
Is a mortgage broker free?
My service is free to you, because the lender pays the commission.
