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Choosing your home loan pathway

Mortgage broker vs bank: which should you use?

A broker can help you compare lenders and organise an application. Going directly to a bank may suit you if you already know the loan you want and prefer to deal with that lender yourself. Compare the actual offers, costs and support before deciding.

Compare the two optionsDiscuss your home loan

Your options

When each option may suit you

You can have an initial conversation before committing to an application. Make the scope of that conversation clear.

Consider a mortgage broker

You want help comparing different lenders, understanding income or deposit requirements, or coordinating documents and settlement.

Consider a bank directly

You have researched a particular product, value dealing with the lender yourself and are comfortable comparing alternatives independently.

Compare before applying

Ask for quotes on the same loan amount, term and repayment basis. An initial discussion is different from authorising a formal credit application.

Side-by-side comparison

What changes when you use a broker?

Lender choice

Mortgage broker
Compare suitable loans from the lenders the broker can access. A panel does not include every lender or product.
Bank directly
Explore that bank’s own loans. You can approach other lenders yourself to build a wider comparison.

Your point of contact

Mortgage broker
The broker helps prepare and coordinate your application with the selected lender.
Bank directly
You work with the bank’s lending team through its available branch, phone or online channels.

Fees and payment

Mortgage broker
Lenders generally pay commission. Some brokers charge client fees, so request clear written disclosure.
Bank directly
Compare the bank’s application, package and ongoing loan fees. Going direct does not remove loan costs.

Approval and timing

Mortgage broker
The broker can explain potential policy issues, but the lender makes the credit decision.
Bank directly
The bank assesses your application against its policies. A direct application is not automatically faster.

After settlement

Mortgage broker
Ask what loan reviews and ongoing help the broker offers and how to request them.
Bank directly
The lender services the loan. Ask about account support, rate reviews and future changes.

Compare the total cost, not just the interest rate

Check upfront and ongoing fees, the repayment type, loan term, offset costs, extra-repayment limits and any fixed-rate break costs. A lower repayment achieved by extending the term can still mean paying more interest overall.

For example, compare two offers using the same remaining term and your expected offset balance. If one includes a package fee, ask whether the features you will use justify that cost. Read our interest rate and comparison rate guide and try the home loan comparison calculator.

Understand the recommendation and the relationship

Australian mortgage brokers have a best interests duty when providing credit assistance. Ask why the recommended loan fits your circumstances and why any higher-cost option is justified. This duty does not mean the broker searches every loan on the market.

Ask about lender access, commissions, any client fees and relevant ownership relationships. Do not assume the word “broker” means independent of every lender or commercial relationship. A clear explanation matters more than a label.

For regulatory guidance, see ASIC’s mortgage broker best interests duty guide.

Bring a bank offer to your broker conversation

If your bank has already quoted a loan, bring the written offer, fees and feature details. Ask what comparable options are available and what would make a different choice worthwhile. If the bank’s offer fits your needs, there is no reason to switch simply to use another channel.

At Find A Better Rate, you work with Chris Berry, a Melbourne-based mortgage broker with more than 18 years of home lending experience and access to a panel of more than 40 lenders. The panel does not cover the whole market. Your initial appointment is free; remuneration and any applicable client fee are explained before you proceed.

Book a home loan discussion or call 03 9125 4339.

Sources checked 19 October 2026: ASIC Moneysmart: using a mortgage broker and choosing a home loan. General information only. Lending criteria, costs and available products vary; approval is subject to lender assessment.

How it works

Make your comparison useful.

  1. 01

    Write down your budget, deposit, timeframe and the features you need.

  2. 02

    Request comparable offers and an explanation of the costs and trade-offs.

  3. 03

    Choose your application pathway and confirm who will handle each next step.

Common questions

Mortgage broker or bank: common questions

What is the difference between a mortgage broker and a bank loan officer?

A bank loan officer or lending specialist discusses that bank’s products. A mortgage broker can compare suitable products from the lenders they can access. Neither necessarily covers the whole market. Ask a broker about lender access, remuneration and ownership relationships rather than assuming every broker is independent.

Is it cheaper to use a mortgage broker or go to a bank?

Neither is always cheaper. Compare written offers using the same loan amount and term, including fees and the features you need. A broker or direct lender cannot guarantee the cheapest loan across the whole market.

Can a broker help with my existing bank?

Ask whether the broker can access that bank and the relevant product. Your bank may also discuss a rate review directly with you. Compare the actual terms rather than assuming the two channels offer identical pricing.

Does a mortgage broker approve my home loan?

No. The lender decides whether to approve the loan. A broker helps prepare the application and communicate with the lender, but cannot override its credit assessment.

Can I speak to a bank and a broker before choosing?

Yes. Clarify whether you are requesting information or authorising an application, and ask before a credit check is performed. Coordinate the next step to avoid unintended duplicate applications.

What should I ask at the first meeting?

Ask about lender access, fees, the reasons for a recommendation, documents needed, expected timing and who will support you through settlement. Bring any written offers you want compared.

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Ready when you are

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