What does a mortgage broker do?

A mortgage broker compares home loan products from multiple lenders to find options suited to your financial situation. They handle the application process, liaise with the lender, and help you understand loan features such as offset accounts, redraw facilities, and fixed vs variable rates.

Is it better to go directly to a bank or use a mortgage broker?

A mortgage broker gives you access to loans from dozens of lenders — not just one bank. They can often negotiate better rates and find niche products. Their service is usually free to you, as the lender pays the broker a commission. MyMoney® lets you compare proposals from multiple mortgage brokers.

How much does a mortgage broker cost in Australia?

Most mortgage brokers are paid by the lender through upfront and trailing commissions, so there is generally no direct cost to you. Some brokers may charge a fee for complex scenarios. Under best-interests duty, brokers must recommend loans in your best interest.

How do I check if a mortgage broker is licensed?

Mortgage brokers must hold an Australian Credit Licence (ACL) or be an authorised credit representative. You can check their credentials on the ASIC Credit Licensee Register. MyMoney® only lists verified, licensed mortgage brokers.

General Information Only

Mortgage Brokers

Home loan comparison and property finance solutions

Mortgage brokers compare home loan products across multiple lenders to help clients find suitable financing for property purchases, refinancing, or investment lending. They are subject to a Best Interests Duty requiring them to prioritise the client's interests.

Am I paying too much for my home loan?

My broker says this is the best rate — how do I check?

Compare your offered rate against the RBA's published lending rates, check comparison sites like Canstar or RateCity, and ask your broker to show you the full panel of lenders they compared. Under the Best Interests Duty introduced in 2021, mortgage brokers must legally demonstrate they considered your circumstances — not just offer whichever lender pays the highest trailing commission.

Read the full answer General information only — not personal financial advice.

What Mortgage Brokers Do

A mortgage broker acts as an intermediary between borrowers and lenders, providing credit assistance across a range of home and investment loan products:

Assessing borrowing capacity based on income, expenses, and financial commitments

Comparing home loan products across a panel of lenders (banks, credit unions, non-bank lenders)

Managing the loan application process from pre-approval through to settlement

Refinancing analysis — comparing current loan terms against market alternatives

Investment property financing and structuring

First home buyer guidance including government grant eligibility

Construction loan structuring and progress payment management

Self-employed and non-standard income lending solutions

Bridging finance and short-term lending options

How a Mortgage Broker Can Help

Engaging a mortgage broker may provide several advantages:

Access to a broad panel of lenders — often 30 or more — providing wider product choice

Subject to a Best Interests Duty: legally required to act in the borrower's best interests

Time savings: one application can be assessed across multiple lenders

Expertise in lender policies, credit assessment criteria, and product features

Assistance navigating complex lending scenarios (self-employed, irregular income, multiple properties)

No direct cost to the borrower in most cases — brokers are typically paid by the lender via commission

Ongoing loan health checks and refinancing reviews

Regulatory Framework

Mortgage brokers must hold an Australian Credit Licence (ACL) or be a credit representative under an existing licensee. They are bound by the Best Interests Duty under the National Consumer Credit Protection Act 2009 (introduced following the Hayne Royal Commission). This is a principles-based obligation — there is no safe-harbour checklist. Brokers must also comply with responsible lending obligations, maintain professional qualifications (minimum Certificate IV in Finance and Mortgage Broking), and hold professional indemnity insurance.

Key Regulatory & Oversight Bodies

ASIC

Australian Securities and Investments Commission

ASIC regulates mortgage brokers under the National Consumer Credit Protection Act 2009. Brokers must hold an Australian Credit Licence (ACL) or operate as a credit representative. ASIC publishes RG 273 (Mortgage Brokers: Best Interests Duty) as guidance.

Website Search ASIC's Credit Register

AFCA

Australian Financial Complaints Authority

AFCA provides free external dispute resolution for complaints about mortgage brokers, lenders, and credit providers.

Website

Key Qualifications & Requirements

Australian Credit Licence (ACL) holder or credit representative

Minimum Certificate IV in Finance and Mortgage Broking

Subject to the Best Interests Duty (BID)

Compliant with responsible lending obligations

Member of AFCA for external dispute resolution

Holding professional indemnity insurance

Meeting ongoing CPD requirements

Why You May Need to Consider a Mortgage Broker

There are a number of life events and circumstances where engaging a mortgage broker may be worth considering. The following are common scenarios — this is not an exhaustive list and is provided for general information only.

Buying a first home

Navigating the lending market for the first time — understanding deposits, LMI, government incentives, and lender requirements — can benefit from professional guidance.

Refinancing an existing loan

Interest rates and product features change regularly. A broker can assess whether a current loan remains competitive.

Investment property purchases

Investment lending involves different assessment criteria, tax considerations, and structuring options compared to owner-occupied borrowing.

Self-employed or complex income

Borrowers with non-standard income streams may benefit from a broker's knowledge of which lenders have more flexible assessment policies.

Construction or renovation financing

Progress-draw construction loans have unique requirements and not all lenders offer competitive products in this space.

Where to Find a Mortgage Broker

Locate a licensed mortgage broker through these channels:

ASIC's Credit Professional Register — verify ACL status and authorisations

Mortgage & Finance Association of Australia (MFAA) — mfaa.com.au provides a "Find a Broker" tool

Finance Brokers Association of Australia (FBAA) — fbaa.com.au

MyMoney® — browse educational content and our curated directory of verified mortgage brokers

Related Verticals

Financial and professional services are interconnected. Depending on the situation, it may be worth exploring these related service areas:

Finance Brokers Financial Planners Insurance Brokers

Important Notice & Disclaimer

The information above is general in nature and does not take into account individual objectives, financial situations, or needs. It is not a recommendation of any particular loan product or lender. Before making borrowing decisions, consider whether the information is appropriate for the circumstances and consider obtaining advice from a licensed mortgage broker or credit provider.

The final decision about engaging any professional service provider rests with you. MyMoney® provides educational content and a directory of professional service providers — it does not provide personal advice or endorse any individual provider.

General advice only — does not take into account your personal objectives, financial situation or needs. Consider whether the information is appropriate before acting on it.

MyMoney® Marketplace is operated by Global Mutual Funds Pty Ltd (ABN 20 090 555 436, AFSL 222640). For more information, please read our Financial Services Guide.