What is a mortgage broker and should I use one?
Last updated: 06 October 2025 | Estimated read time: 4 Minutes
Buying a home is exciting, but with so many lenders and loan types to choose from, finding the right fit can feel overwhelming. That’s where a mortgage broker might be able to help find the right home loan.
In fact, 83% of Aussies who'd previously used a mortgage broker said they'd do so again. 1
What does a mortgage broker do?
Mortgage brokers arrange home loans between lenders, and borrowers – people who are looking for a home loan. They can discuss your home loan needs and goals, find home loan options to suit your situation and assist you with the application process.
Mortgage brokers act as intermediaries between borrowers and lenders. They take the time to understand your financial situation and home loan goals, then present loan options that may suit your needs.
A good broker will:
- Help you understand how much you may be able to borrow.
- Compare loan features and costs.
- Guide you through the application process, right through to settlement.
And the best part? Most brokers are paid by lenders, so you typically won’t pay a fee for their services.
Tips to help choose a mortgage broker
Check their credentials
- Make sure they’re licensed via ASIC’s register.
- Look for membership with either the Mortgage and Finance Association of Australia or the Finance Brokers Association of Australia.
- Read online reviews to see what other customers have said.
Expect plenty of questions
A broker should ask about:
- Your employment, income, and expenses.
- Your relationship status and dependents.
- Your loan preferences — like fixed vs variable, offset accounts, or credit cards.
Meeting your mortgage broker
Before your first meeting, it’s helpful to:
- Gather your financial and employment documents.
- List your “must-have” and “nice-to-have” loan features.
- Think about your preferred loan term.
And don’t forget to ask questions. Here are a few to get you started:
- Which/how many lenders are on your panel?
- How do you get paid and does this differ between lenders?
- Why did you recommend this loan to me?
- How does each loan option work?
- What features and options come with each loan option. How do they work and how do they meet my requirements?
- What are the fees and charges for each loan option?
- What information will I need to provide for the loan application?
- Will I need to pay lender’s mortgage insurance?
Once you’ve found a home loan that suits your needs, it’s a good idea to ask your broker for the details in writing. This gives you the chance to review the features, fees, and terms carefully, and make sure everything stacks up.
If the options don’t feel quite right, you’re well within your rights to ask for alternatives or even explore other brokers. It’s your financial future, and you should feel confident in every step. Don't feel rushed into making a decision, and take the time to carefully consider your options.
A home loan is a long-term commitment, often one of the biggest financial decisions you’ll make. That’s why it’s important to choose a loan that fits your personal situation. A mortgage broker can help guide you through the process, explain your options clearly, and support you in making a decision that feels right for you.
Answering your top questions about mortgage brokers
Is it cheaper to get a mortgage through a broker?
Mortgage brokers can have access to a wide range of lenders, so they can be a good way to understand what offers are currently in-market, and most of all, talk to someone about what could work for your situation. While most brokers don't charge for their services (as they are paid via a trailing commission if you take out a loan through them) they sometimes may have access to industry rates that banks aren't offering to the public. However, as always, it pays to do your own research.
Mortgage broker vs bank: which is better?
This will depend on your situation. While a broker will have access to a wide range of lenders and can help you compare products, they generally won't have access to every product available on the market (some lenders only offer direct-to-consumer loans) so it could be a good idea to do your own research first to understand what offers are available, and what value looks like to you.
Contributor | Barry Saoud, General Manager, Mortgages and Commercial Lending
Barry joined Pepper Money in July 2021 as General Manager, Mortgages and Commercial Lending. He is responsible for the strategic direction and operating performance across product, credit, and settlements for mortgages, commercial loans, personal loans, and direct sales. Read more.
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