Why More Australians Are Choosing a Mortgage Broker Over Their Bank
Mortgage brokers now arrange a record 81.6% of new home loans in Australia — up sharply over the past eight years. The main reason is choice: a broker can compare rates, policies, and features across many lenders, rather than you being limited to whatever one bank offers.
Going Straight to Your Bank Means Seeing Only One Lender's Options
For a lot of Australians, getting a home loan has traditionally meant walking into their own bank and taking whatever rate and product they're offered. It feels simple, but it also means comparing nothing. You only see one lender's rates, one lender's policies, and one lender's view of what you can borrow.
That matters more than most people realise. Different lenders assess things like income, overtime, bonuses, and existing debts differently, which means your borrowing capacity — and the rate you're offered — can vary significantly from one bank to the next. If your only comparison point is the bank you already use, you have no real way of knowing whether you're getting a good deal.
A Broker Compares the Whole Market on Your Behalf
This is exactly why more Australians are turning to mortgage brokers — a record 81.6% of new home loans in the most recent quarter were arranged through a broker, up 27.7 percentage points over the past eight years.
Unlike a bank, which can only offer its own products, a broker can compare across dozens of loans from different lenders, looking at things like:
Interest rates — both advertised and negotiated rates
Borrowing policies — how different lenders assess your income and expenses
Serviceability calculations — which affects how much you're able to borrow
Loan features — offset accounts, redraw facilities, fixed vs variable options
Eligibility requirements — some lenders are more flexible than others depending on your situation
This matters even more when interest rates are elevated and household budgets are under pressure. A small difference in rate, or a better-suited loan structure, can make a real difference to your monthly repayments.
A Loan That Actually Fits Your Situation
Working with a broker means you get a loan chosen because it suits your circumstances, not just whatever product your existing bank happens to sell. That can mean a lower rate, better features, or simply the confidence of knowing you've actually compared your options.
It's also typically at no direct cost to you — brokers are generally paid by the lender, not the borrower, once your loan settles.
Frequently Asked Questions
Does it cost anything to use a mortgage broker?
In most cases, no. Brokers are typically paid a commission by the lender once your loan settles, not by you directly.
Is a broker better than going directly to a bank?
A broker can show you options across multiple lenders, while a bank can only offer its own products. For most borrowers, that broader comparison means a better chance of finding a loan that suits their specific situation.
How do I choose a mortgage broker?
Look for a broker who's transparent about how they're paid, takes the time to understand your full financial picture, and has access to a wide panel of lenders rather than just a handful.
Buying or refinancing? Let's compare your options together and find a loan that actually suits your circumstances.
General advice warning: This article contains general information only and does not take into account your objectives, financial situation or needs. Before acting on it, consider whether it's appropriate for you and seek personalised advice. All loans are subject to lender credit assessment and approval, and terms, conditions, fees and charges apply.
