Do I Need a Mortgage Broker in Australia?
Short answer: you are never forced to use a mortgage broker, but four out of five Australians now choose to. That tells you something.
In the December 2025 quarter, brokers arranged 76.7% of all new home loans, the highest share on record. Five years ago it was under 60%. People are voting with their loans.
This is the honest version of why, including the part most broker posts skip: the cases where you are better off walking into your own bank.
Market share: MFAA and Cotality, December 2025 quarter. Figures as at June 2026.
What a mortgage broker actually does
A bank can only offer you one thing: its own loans. A broker sits on your side of the table and shops the market for you.
In practice that means we work out what you can borrow, compare loans across a panel of lenders, match you to the ones that actually fit your situation, then handle the application, the back and forth and the chase to settlement. If your income is self-employed, your deposit is small, or you are an investor juggling a few properties, that matching is where the real value sits.
The job does not end at settlement either. A good broker reviews your loan over time and tells you when it is worth refinancing, which is a conversation your bank rarely starts for you.
Who arranges Australian home loans now
New residential home loans, December 2025 quarter. Source: MFAA and Cotality. Broker share has risen from under 60% in mid-2021.
How brokers get paid (and why it is usually free to you)
This is the question everyone has and few brokers answer plainly. For most standard home loans, you pay the broker nothing. The lender pays the broker a commission when your loan settles.
There are two parts to it. An upfront commission when the loan settles, and a smaller trail commission each year the loan stays in place. Both are paid by the lender, not added to your rate, and lenders pay broadly similar commissions, so there is no incentive to push you to a pricier loan. Best interests duty makes that a legal line, not just a promise.
| Who pays | What it is | Cost to you |
|---|---|---|
| The lender | Upfront commission at settlement | Nil |
| The lender | Trail commission each year the loan runs | Nil |
| You (rare) | A fee on some complex or specialist deals | Told upfront |
A broker must disclose how they are paid. If a fee ever applies, you hear about it before any work starts.
Broker vs bank, side by side
| Straight to a bank | Through a broker | |
|---|---|---|
| Lenders compared | One, their own | 30 or more on a panel |
| Legal duty to you | None when selling its own loans | Best interests duty since 2021 |
| Cost to you | Nil | Usually nil |
| Does the paperwork | You do | The broker does |
| Tricky income or low deposit | One policy to fit | Matched to a lender that says yes |
General comparison. Figures as at June 2026.
Best interests duty: the bit banks do not have to do
Since 1 January 2021, the law (ASIC Regulatory Guide 273) requires mortgage brokers to act in your best interests and put your interests ahead of their own. We have to be able to show why the loan we recommend suits you, on file, for every client.
A bank teller or its own lending staff are not held to that duty when they sell you the bank's products. That single difference is one of the clearest reasons brokers keep winning market share.
The part most posts skip: when a bank wins
No panel covers every lender. A broker works from a panel, and a few lenders only deal directly with customers. If one of those happens to have the perfect product for you, a broker will not place it, though a good one will tell you it exists.
Your own bank may fight to keep you. If you have a long history and several accounts in one place, your bank can offer a loyalty discount that is genuinely sharp. Always let them have a go before you sign anything.
Simple finances, strong offer. Salaried income, a healthy deposit and a great rate already in hand? Going direct can be perfectly fine. A broker earns their keep most when the situation is not textbook.
This is general information, not financial or credit advice. Get advice specific to your situation.
So, do you need one?
If your finances are simple and you have already negotiated a sharp rate, you may not. If you are self-employed, buying your first place on a small deposit, building an investment portfolio, or you simply do not have the hours to chase lenders, a broker usually saves you both time and money, at no cost to you.
The cleanest way to decide is to get your numbers in front of someone who can see the whole market, then compare that against your bank's best offer. If your bank wins, great. If not, you have just saved yourself a lot.
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Book my free callMatty Teague, Mortgage Broker, Powered by Flint. Credit Representative 573962. Flint Group Pty Ltd ACL 488313.
FAQs
Do I actually need a mortgage broker?+
You are not required to use one, but most Australians now choose to. Brokers arranged 76.7% of all new home loans in the December 2025 quarter, a record. A broker compares lenders for you, handles the paperwork, and since 2021 is legally bound to act in your best interests, which a bank that only sells its own products is not.
How much does a mortgage broker cost?+
For most standard home loans, a broker is free to you. The lender pays the broker a commission when your loan settles, and best interests duty means that commission is not allowed to drive the recommendation. A small number of complex or specialist deals carry a fee, but a good broker tells you that upfront before any work begins.
Can a mortgage broker get me a better rate than the bank?+
Often, yes. A broker can put your file across 30 or more lenders and ask for discretionary pricing that banks use to win business but never advertise. They cannot guarantee the lowest rate on the market, and sometimes your own bank offers a strong loyalty discount, so the smart move is to compare both.
Is a mortgage broker better than going straight to a bank?+
It depends on your situation. A bank only sees its own products. A broker compares many lenders, knows which ones suit self-employed income, investors or low deposits, and is bound by best interests duty. If you already have a sharp offer from your bank and simple finances, going direct can still work. For anything less than straightforward, a broker usually saves you time and money.
What is the best interests duty?+
It is a law in force since 1 January 2021 (ASIC Regulatory Guide 273) that requires mortgage brokers to act in your best interests and to put your interests ahead of their own. Banks and their own staff are not held to this same duty when they sell you their products, which is one of the clearest reasons people use a broker.
Does a mortgage broker have access to every lender?+
No. A broker works from a panel, often 30 or more lenders, but no panel covers every lender in the country, and a few lenders only deal directly with customers. A good broker is upfront about which lenders sit on their panel and will tell you if a direct-only deal might suit you better.
Keep reading
How much deposit do you really need to buy a house in Australia?
How to use equity to buy an investment property
Matty compares the whole market for first home buyers and investors, then gets the loan structured right from day one. No cost to you for most home loans, and a straight answer on whether a broker beats your bank.
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