A broker and a bank can both help arrange lending, but their scope, process and product access differ.
A bank represents its own products
A lender employee generally discusses products from that institution. This may suit someone already confident the bank’s policy and product meet their needs.
A broker assesses relevant options
A mortgage broker gathers your requirements and financial position, then assesses suitable options from the lenders available through their panel.
- Needs and objectives discussion
- Comparison and recommendation process
- Application packaging
- Lender communication
- Settlement support
Best interest duties
Australian mortgage brokers have legal obligations when providing credit assistance to consumers, including acting in the consumer’s best interests in relevant circumstances.
The relationship still matters
Experience, communication, lender access, explanation quality and ongoing service can affect the client experience. Ask how the broker is paid and request the required credit disclosures.
Common questions
Does a broker have access to every lender?+
No. Brokers operate with an approved lender panel, which should be disclosed.
Can a broker get a lower rate than the bank?+
Sometimes pricing may differ, but it is not guaranteed. Suitability depends on more than rate alone.
This guide does not consider your objectives, financial situation or needs. Lending policies, government programs and thresholds can change. Obtain current credit, legal, tax or financial advice as appropriate.