Using a Mortgage Broker
Thinking about using a mortgage broker? Straight answers from a licensed Adelaide broker on cost, commission, lender access, broker versus bank, and the protections that keep a broker on your side.
Mortgage brokers in Australia are generally paid by the lender, not the borrower, so for most people they are free to use, and commission does not raise your rate. A good broker compares a broad panel of lenders and, under the Best Interests Duty in force since 2021, must act in your best interests. These guides cover cost, commission, lender access and broker versus bank.
These guides answer the questions people ask most about using a mortgage broker in Australia: whether brokers are free, how they are paid through lender commission, how to find a good broker, whether they have access to all banks, how a broker compares with going direct to the bank, and what the Best Interests Duty means for you. Current for 2026, written by a licensed mortgage broker.
Most brokers are free to the borrower
Mortgage brokers in Australia are generally paid by the lender through commission when your loan settles, not by you. Any rare fee must be disclosed in writing before you proceed.
Commission does not raise your rate
Broker commission comes from the lender margin and is broadly standardised across lenders, so going through a broker does not increase your interest rate compared with going direct.
Brokers compare a broad panel
A good broker works from a panel of dozens of lenders, including non-bank lenders you cannot approach directly, and matches your situation to the right policy fit.
The Best Interests Duty protects you
Since 2021, brokers have been legally required to act in your best interests, putting your needs ahead of their own commission. Bank branch staff are not under the same duty to you.
Where to get help
If you want to understand your options, a broker can compare lenders, explain how they are paid, and recommend a loan that suits you, usually at no cost to you because the lender pays the broker on settlement.
- Mortgage brokers are generally paid by the lender, not the borrower, so for most people they are free to use.
- Broker commission comes from the lender margin and does not raise your interest rate; rates are broadly standardised across lenders.
- A good broker compares a broad panel of lenders, including non-bank lenders you cannot reach directly.
- The Best Interests Duty, in force since 2021, legally requires brokers to act in your best interests.
- Any broker fee, which is uncommon for standard loans, must be disclosed in writing before you proceed.
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Using a Mortgage Broker: common questions
Are mortgage brokers free in Australia?
For most borrowers, yes, in the sense that you usually pay nothing directly. Mortgage brokers in Australia are generally paid by the lender through commission when your loan settles, not by you. A small number of brokers charge a fee for complex or unusual cases, but they must disclose any fee in writing before you proceed, so you will know upfront.
How do mortgage brokers get paid in Australia?
Mortgage brokers are generally paid by the lender, not the borrower. When your loan settles, the lender pays the broker an upfront commission, commonly around 0.55 to 0.70 per cent of the loan amount, plus an ongoing trail commission, commonly around 0.15 per cent a year of the outstanding balance, for as long as the loan runs. The borrower usually pays nothing directly.
How do I find a good mortgage broker near me?
Look for a broker who holds or operates under an Australian Credit Licence, belongs to an industry body such as the MFAA, has experience with your type of situation, and is clear about how they are paid. A good broker explains the Best Interests Duty, compares a broad panel of lenders, and puts your needs first. Reviews and referrals help, but fit for your situation matters most.
Do mortgage brokers have access to all banks?
Not literally every lender, but a good broker has access to a broad panel, often covering dozens of lenders including the major banks, smaller banks, credit unions and non-bank lenders. That is far more than you can reach on your own, and it includes lenders that do not deal with the public directly. No broker has every single lender, so the size and range of the panel matters.
Mortgage broker vs going straight to the bank: which is better?
Going direct to a bank gives you that one bank products only, assessed against its own policies. A broker compares many lenders for you, matches your situation to the right policies, handles the paperwork and can negotiate, usually at no cost to you. The bank works for the bank; under the Best Interests Duty, a broker must work for you. For most borrowers a broker widens the options.
What is the Best Interests Duty for a mortgage broker?
The Best Interests Duty (BID) is a legal obligation, in force since 2021, that requires mortgage brokers to act in the best interests of their clients when recommending a loan. It means a broker must put your interests ahead of their own, including ahead of any commission, and recommend a loan that genuinely suits you. It is a key consumer protection that applies to brokers.
General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.