If you’ve started looking into buying a home, refinancing, or growing a property portfolio, you’ve probably heard about, looked for or considered working with a mortgage broker. But what is a mortgage broker, and are they worth using?
A mortgage broker is a licenced professional who acts as the go-between for you and the lenders. Instead of walking into one bank and hoping for the best, your broker shops the market on your behalf, does the legwork, and helps you land the right loan for your situation.
Key Insights
- A mortgage broker works for you, not a bank. They’re legally required to act in your best interests
- They compare home loans across a wide panel of lenders, not just one institution
- Their services are generally free to borrowers. Lenders pay the commission
- Brokers now write more than three in every four new home loans in Australia
- A good broker doesn’t just find you a loan; they support you from the first conversation all the way through to settlement
What Is a Mortgage Broker and How Are They Different from a Bank?
When you go straight to a bank, you’re dealing with someone whose job is to sell you that bank’s products. A mortgage broker is different. Their role is to understand your financial situation, then search across a panel of lenders (including major banks, non-bank lenders, and specialist lenders) to find the loan that actually fits.
Brokers are licensed under the National Consumer Credit Protection Act and must hold an Australian Credit Licence (or operate as a credit representative of one). That means there’s a regulatory framework keeping them accountable.
For a deeper look at how the two options compare, check out our mortgage broker vs bank breakdown.
What Does a Mortgage Broker Do?
The role of a mortgage broker goes well beyond “finding a loan.” Here’s what the process actually looks like when you work with one.
1. Understanding your situation
Before recommending anything, a good broker takes the time to understand your goals, whether that’s buying your first home, refinancing to a better rate, or building an investment portfolio. They’ll ask about your income, expenses, debts, deposit, and what you’re hoping to achieve.
2. Working out your borrowing capacity
Once they understand your circumstances, your broker crunches the numbers. They’ll assess what you can realistically borrow, factor in any existing debts, and flag potential issues with your application before they become problems.
3. Searching the market for your best options
This is where the real value kicks in. Your broker compares loans across their lender panel (including rates, fees, features like offset accounts and redraw facilities, and loan structure options) and narrows it down to the options that suit your needs.
4. Explaining the costs
A good broker walks you through comparison rates, fees, and the true cost of a loan over time. They’re not just chasing the lowest headline rate; they’re making sure the overall product works for you.
5. Preparing and submitting your application
Your broker handles the paperwork. They’ll collect the documents you need, check that everything’s in order, and submit the application to the right lender. A clean, well-prepared application is far less likely to hit delays.
6. Managing the process to settlement
Once your application is in, your broker stays on top of it. They liaise with the lender, keep you updated, and step in if any issues come up. The goal is a smooth run from approval through to settlement.
If you’re a first-home buyer and want to know exactly what to expect from a broker conversation, our first-home buyer mortgage broker guide covers it in detail.
The Best Interests Duty: Why This Matters to You
One thing that sets mortgage brokers apart from bank staff is the Best Interests Duty (BID). This is a legal requirement that came into effect on 1 January 2021, requiring all licenced mortgage brokers to act in your best interests (not the lenders’) when recommending a home loan.
ASIC has outlined three key stages where this duty applies: gathering information about you, making an individual assessment of what suits your needs, and presenting recommendations with clear reasoning.
If a broker stands to earn more by recommending a particular loan, that can’t be the reason they recommend it. Your circumstances and goals have to drive the recommendation. This obligation is regulated by ASIC and is separate from other responsible lending requirements.
For borrowers, it’s a meaningful layer of protection and a good reason to feel confident working with a licenced mortgage broker in Brisbane.
How Do Mortgage Brokers Get Paid?
In Australia, mortgage brokers are typically paid by the lender, not you. The usual upfront commission sits between 0.65% and 0.70% of the loan amount (before GST). On top of that, brokers may also receive a trail commission based on the remaining loan balance, for the life of the loan.
For most standard home loans, you won’t pay anything out of pocket for using a broker. All commission structures must be disclosed to you upfront. Brokers are legally required to be transparent about how they’re paid and whether it could influence their recommendations.
Why More Australians Are Choosing Brokers
Mortgage brokers wrote 76.7% of all new residential home loans in Australia in the December 2025 quarter, the highest broker market share recorded in any December quarter since tracking began in 2013.
The MFAA’s CEO noted that record market share is a strong endorsement of the role mortgage brokers play in helping Australians reach their financial goals.
People aren’t using brokers just because it’s convenient. They’re using them because the expertise and access to multiple lenders deliver better outcomes. Whether it’s navigating complex income structures, finding specialist lenders for unusual properties, or just cutting through the confusion of 30+ loan products from one lender alone, a broker earns their place in the process.
Who Benefits Most from Using a Mortgage Broker?
The role of a mortgage broker is valuable across a wide range of situations. Here’s who tends to get the most out of the relationship:
- First home buyers: the process is new and can feel overwhelming. A first home buyer mortgage broker explains every step and helps you avoid costly mistakes.
- People refinancing: your current loan might no longer be the right one. A refinance mortgage broker can compare the market and often find you a better rate or structure.
- Investors: loan structure matters enormously for property investment; a broker helps you build a portfolio with the right strategy from day one.
- Self-employed borrowers: income verification can be tricky; brokers know which lenders are more flexible and how to present your application in the strongest light.
- People who’ve been knocked back: a broker can often find a path forward when a bank has said no.
Ready to Chat with a Brisbane Mortgage Broker?
At Woodrow Finance, we work with buyers, refinancers, and investors across Brisbane and surrounds. Whether you’re buying your first home or your fifth investment property, we take the time to understand what you’re trying to achieve, then do the legwork to get you there.
Get in touch with our team for a no-obligation conversation about your options. We’re Brisbane-based, know the local market, and are here to make the process much less stressful.
FAQs
Is a mortgage broker worth it?
For most people, yes. You get access to multiple lenders, expert guidance, and someone managing the application process, typically at no cost to you. The main thing to look for is a broker who’s licensed and takes the time to understand your situation rather than just pushing you toward a quick approval.
How do I find a licensed mortgage broker?
In Australia, mortgage brokers must hold an Australian Credit Licence or operate as a credit representative of one. You can search for MFAA-accredited brokers at mfaa.com.au or ask a broker directly for their licence details. Our questions to ask a mortgage broker guide gives you a solid list to work from.
Does using a broker affect my credit score?
A broker will typically do a soft credit check early on (which doesn’t affect your score) before submitting a formal application. Submitting multiple applications to different lenders yourself can impact your score. One advantage of a broker is that they identify the right lender before lodging.
Can a mortgage broker help if I've been declined by a bank?
Often, yes. Brokers have access to a broader range of lenders than most borrowers would approach on their own, including specialist lenders who work with non-standard income types or credit situations.