What Does a Mortgage Broker Actually Do?
- marketing60313
- Sep 7
- 2 min read
When you’re buying a home or investment property, it’s tempting to go straight to your bank. But a mortgage broker plays a very different role. Brokers are licensed professionals who act as intermediaries between borrowers and lenders. They assess your financial situation and recommend suitable loan products from a panel of lenders rather than just one bank. In Australia, brokers must act in your best interests and hold an Australian Credit Licence or authorisation under one moneysmart.gov.au. This “best interests duty” means they cannot recommend a loan that benefits them more than you.
Why brokers matter
Choice: Instead of comparing a handful of products yourself, a broker has access to dozens of loans and knows which lenders offer flexible policies (e.g. for self‑employed borrowers). The MFAA reported that brokers wrote 74.1 % of new home loans between January and March 2024 because Australians trust them to find suitable loans and navigate complex lending rules mfaa.com.au.
Expert guidance: Moneysmart notes that brokers help explain fees and features, prepare your application and manage the loan process moneysmart.gov.au. They also liaise with the lender and your conveyancer so you don’t have to.
Time and money savings: A broker can negotiate rates and fee waivers on your behalf. Because they know each lender’s approval criteria, they help you avoid multiple credit enquiries that could hurt your credit score.
When to meet a broker
Before your first meeting, gather information about your income, expenses, savings and any debts. Moneysmart suggests asking the broker how they get paid, how many lenders they work with and whether they receive higher commissions from particular lenders moneysmart.gov.au. Always insist on a written quote for their services and ensure the broker explains any fees you’ll pay directly.
A mortgage broker’s job is more than filling out forms. They act as your guide through the home‑loan maze, ensuring the loan you pick suits your budget now and in the future.