Should you choose a mortgage broker or go with a bank?

While a mortgage broker can help you sort through all the lenders in the market, there may also be advantages to going directly to a lender. Which one should you choose?

What does a mortgage broker do?

A mortgage broker is responsible for assessing your situation and your creditworthiness to develop a better picture of your chances of qualifying for a home loan.

Next, a mortgage broker will take your information and work to find a loan that meets your needs as closely as possible. Most brokers have access to vast databases of information on available lenders, allowing them to research your options quickly and effectively.

Brokers can also provide guidance throughout the entire process. If you have questions about your mortgage options, contacting a broker can be very effective.

The advantages of using a mortgage broker

Brokers offer choice to a wide range of lenders, and a good broker is well practiced in finding the best deals. They will know the nuances of lenders' credit policies, and should be able to direct you to lenders best suited to your circumstances. When it comes to seeking a mortgage via a bank, the broker can also advocate on your behalf, increasing your chances of success with the process.

The disadvantages of using a broker

Despite the many benefits associated with using a broker, there could also be some disadvantages. Due to the sheer number of brokers out there, it can be difficult to determine which brokers are highly experienced, and which brokers are new.

If you don't have a solid understanding of the finance and mortgage industry, it can also be difficult to judge what is a good deal, or when you might do better visiting a local lender. Using a mortgage broker requires a bit of personal research and understanding, although it’s certainly possible to gain this information.

Learn more about how brokers work

Compare mortgage brokers below

Rates last updated September 24th, 2018
Details Features
Aussie Home Loans
Aussie Home Loans
Aussie is one of Australia's leading financial service providers, having won The Adviser’s Top Mortgage Broker award for the last 3 years. They charge no appointment fees and can meet at a time and place which suits you.
Up to 22 lenders Enquire Now More info
Yellow Brick Road
Yellow Brick Road
Yellow Brick Road has over 40 lenders on their panel, as well as their own competitive home loans. 40+ lenders Enquire Now More info
Mortgage Choice Home Loans
Mortgage Choice Home Loans
Mortgage Choice is one of Australia's largest independent broker services. They have over 28 lenders on their panel, including the big four banks. 28+ lenders Enquire Now More info
Finsure
Finsure
Finsure has loan offers from over 35 lenders, including major brands, and will work to find a home loan that suits your property needs.
Over 35 lenders Enquire Now More info
eChoice Mortgage Brokers
eChoice Mortgage Brokers
When you do business with eChoice you will be given your own home loan manager to help you select a loan. 25 lenders Enquire Now More info

Learn how to find the best mortgage broker

What does a bank loan officer do?

Bank loan officers work for one specific bank or lender, and often receive volume incentives when providing clients with loans.

If you already have great credit, are a customer of the bank, and have a stable income, you will most likely find a good rate through your bank. A loan officer can match you to the best loan product available within that specific bank. If you choose this option, and you are already a customer of the bank, don't be afraid to probe for a better deal on your mortgage.

The advantages of using a bank loan officer

Going through a bank loan officer can allow you to access a direct line to the very best deals at the bank or lender you choose to work with. Bank loan officers are also extensively experienced in working with the lender, their policies and their loans. They can answer any questions you might have about the loan or lending process, ensuring that you fully understand what you are taking on. Further, they can often structure a loan to work with other bank-provided products you have already.

Another advantage of going through a bank loan officer is dealing directly with your lender. This means any questions you have or any additional information the lender needs can be addressed without taking the time to go through an intermediary.

The disadvantages of using a bank loan officer

The disadvantages of sourcing your loan directly from a bank are mostly related to limitation. A bank loan officer has access only to the loans offered by the bank or lender through which they are employed. This can seriously restrict the options available to those who are not a direct customer of the lender already.

Compare today's home loan rates

Rates last updated September 24th, 2018
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Loan purpose
Offset account
Loan type
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.59%
3.59%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
3.64%
3.66%
$0
$0 p.a.
90%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.
3.64%
3.65%
$0
$0 p.a.
80%
Get a very low interest rate and pay fewer fees. Enjoy a fast online application process and add a 100% offset account for $10 a month.
3.64%
3.66%
$0
$0 p.a.
80%
A simple mortgage with a competitive interest rate and no application or monthly fees. Borrow up to $2 million from a convenient online lender.
3.68%
3.82%
$0
$10 monthly ($120 p.a.)
80%
Get double Velocity Frequent Flyer Points with this mortgage to spend on flights and more (for a limited time, subject to eligibility requirements). Redraw facility available on this variable rate home loan. Competitive interest rate.
3.69%
4.12%
$0
$395 p.a.
80%
Unlock a range of savings with this competitive package home loan offer. Offset account and redraw facility included.
3.65%
3.66%
$0
$0 p.a.
90%
Competitive interest rate and low fees. Available with a 10% deposit. Partial offset account attached (offset up to $15,000).
3.54%
3.57%
$0
$0 p.a.
80%
A competitive variable interest rate product aimed at refinancers looking to switch to a lower rate.
3.79%
3.80%
$0
$0 p.a.
90%
Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000.
3.49%
4.57%
$0
$395 p.a.
90%
Loans over $150k get a discount off an already low fixed rate. Available for NSW, QLD and ACT residents only.
3.64%
3.78%
$0
$10 monthly ($120 p.a.)
80%
Earn double Velocity Frequent Flyer Points on your mortgage for a limited time (subject to eligibility requirements). Plus, access a 100% offset account to save on interest.
3.75%
3.75%
$0
$0 p.a.
70%
Pay no application or ongoing fees and get a flexible loan with the ability to split up to 6 times.
3.79%
3.82%
$0
$0 p.a.
80%
A variable investor mortgage with a high borrowing amount so you can fund a large purchase.
3.74%
4.13%
$0
$349 p.a.
90%
Get a sharp rate plus package discounts and a 100% offset account.
3.64%
3.65%
$0
$0 p.a.
80%
Fast, 100% online application process. Very limited fees. Optional offset account (with fee).
3.77%
3.81%
$695
$0 p.a.
95%
A simplified mortgage with a low interest rate and a redraw facility.
3.54%
3.58%
$0
$0 p.a.
80%
Get a competitive rate, save on fees and access a 100% offset account plus redraw facility. $900 cashback offer.
3.64%
3.64%
$0
$0 p.a.
70%
A low interest rate home loan with no application or ongoing fees.
3.80%
3.80%
$0
$0 p.a.
70%
Earn tens of thousands of Qantas Points or more with this variable owner occupier mortgage. Requires a 30% deposit.
3.79%
3.79%
$0
$0 p.a.
80%
Access an offset account and pay no application or ongoing fees on this special variable rate for owner-occupiers.
3.71%
3.71%
$0
$0 p.a.
70%
A variable rate home loan that has a lot of flexible features. This loan has a 100% offset account.
3.88%
3.89%
$0
$0 p.a.
90%
Save on interest with a free 100% offset account and buy your property with just a 10% deposit.
3.72%
3.74%
$0
$0 p.a.
80%
Save on interest by taking advantage of a 100% offset account along with no ongoing fees or application fees.
3.85%
3.85%
$0
$0 p.a.
80%
Pay no application and ongoing fees with Macquarie Bank Basic Home Loan. Split and redraw facilities included.
3.64%
3.64%
$0
$0 p.a.
70%
A basic variable home loan that offers a competitive interest rate with no application fees and no ongoing fees.
3.83%
4.89%
$0
$395 p.a.
80%
A flexible 3 year fixed rate loan you can use to buy your own home.
3.84%
3.84%
$0
$0 p.a.
80%
Pay no application or ongoing fees and get access to a free redraw facility with this innovative online lender.
3.87%
3.91%
$0
$10 monthly ($120 p.a.)
90%
Get Velocity Frequent Flyer Points at settlement, monthly and every three years, plus the option to make up to $10,000 a year in extra repayments.
3.79%
4.67%
$0
$349 p.a.
90%
A package home loan with a sharp fixed rate and a 10% deposit option for low deposit borrowers.
3.70%
3.90%
$0
$0 p.a.
70%
Enjoy all the benefits of the Basic Home Loan and take advantage of an offset account.
3.74%
3.74%
$0
$0 p.a.
80%
A basic owner-occupier home loan with a low variable rate that requires a 20% deposit.
3.72%
4.10%
$0
$395 p.a.
80%
New borrowers or refinancers can get a discounted rate with this package loan. Bonus $1,500 cashback for refinancers.
3.59%
3.64%
$0
$0 p.a.
80%
Apply online and get fast approval for this fixed rate, low-fee loan with redraw facilities. Add a 100% offset account for a small fee.
3.99%
4.13%
$0
$10 monthly ($120 p.a.)
80%
A competitive variable rate home loan with no application fee.
3.59%
4.19%
$0
$10 monthly ($120 p.a.)
90%
Get a low discounted rate for 2 years plus a 100% offset account. And you can get the loan with a 10% deposit.
3.62%
3.62%
$0
$0 p.a.
95%
A low deposit mortgage with a competitive rate and plenty of flexibility. QLD residents only. Eligible borrowers can get a 15% discount on home and contents insurance for the life of their loan.
3.84%
3.82%
$0
$0 p.a.
80%
A fixed rate loan with free redraws, few ongoing fees. Apply online with a fast approval process.
3.89%
3.94%
$0
$0 p.a.
80%
Pay no application or ongoing fee and borrow up to 80% LVR.
3.73%
3.87%
$0
$10 monthly ($120 p.a.)
80%
Borrow up to $500000 and earn Velocity Frequent Flyer Points (terms and conditions apply).
3.75%
4.00%
$0
$248 p.a.
70%
Borrowers with a 30% deposit can get this competitive rate.
3.59%
4.74%
$0
$395 p.a.
90%
Enjoy a competitive rate with no application fee for this package loan.
3.74%
3.74%
$0
$0 p.a.
110%
Pay no deposit or LMI and get a discounted rate with this family pledge loan. Requires a family member to act as guarantor. NSW, Qld and ACT only.
3.76%
4.15%
$0
$395 p.a.
90%
A high maximum LVR home loan with redraw facility and additional payments. Get this mortgage with a 10% deposit.
3.67%
3.69%
$0
$0 p.a.
80%
Family guarantee option available. Enjoy flexible repayments and a low minimum loan amount.
3.81%
3.81%
$0
$0 p.a.
80%
A home loan with a competitive rate and plenty of handy features. This product comes with a 100% offset account.
4.04%
4.07%
$0
$0 p.a.
90%
For a limited time, pay no application or settlement fees. You can also take advantage of a free redraw facility.
3.97%
3.99%
$0
$0 p.a.
80%
Package your owner occupied loan with investment loan and receive a discounted investment rate. 100% offset account included.
3.69%
4.08%
$0
$349 p.a.
90%
Package your loan with other AMP products and save on rates and fees.
3.93%
3.94%
$0
$0 p.a.
80%
A low-fee line of credit loan from an online lender. Unlock the equity in your home and make interest-only repayments with a competitive rate.
3.89%
3.91%
$0
$0 p.a.
80%
This variable rate loan keeps the features simple and fees low. This loan is offered by a 100% online lender.
3.99%
3.99%
$0
$0 p.a.
70%
Investors with a 30% deposit can get this low rate loan to fund their property portfolio.
3.89%
3.94%
$0
$0 p.a.
90%
Borrow up to 90% of the value of the property you're buying, and pay no application fee.
4.13%
4.14%
$0
$0 p.a.
90%
Access a fee-free offset account and a special interest rate for investors.
4.18%
4.18%
$0
$0 p.a.
80%
Investors get a 100% offset account and pay no application or ongoing fees on this loan from an innovative online lender.
3.72%
3.72%
$0
$0 p.a.
90%
New customers can get a discounted variable rate and a fee-free redraw facility. NSW, QLD and ACT residents only.
3.59%
4.14%
$395
$0 p.a.
80%
A one year fixed rate offer with no ongoing bank fees.
3.89%
4.94%
$595
$0 p.a.
90%
Borrow up to 90% of the value of the property you're buying and pay no application or ongoing fees.
3.74%
4.01%
$395
$0 p.a.
80%
A competitive fixed interest rate product with no ongoing bank fees.
3.70%
3.70%
$0
$0 p.a.
70%
Get a discount for keeping your LVR at 70% or below with this innovative online lender.
3.99%
4.86%
$0
$0 p.a.
80%
Access a fee-free 100% offset account and pay no application or ongoing fees.
3.99%
4.62%
$395
$0 p.a.
80%
Investors can enjoy flexible repayments and an easy application process with this pioneering online lender.
3.69%
4.54%
$0
$395 p.a.
90%
A fixed rate loan with a 100% offset account and the option to make additional repayments. Loans over $150k receive a discounted rate. NSW, QLD and ACT residents only.
3.99%
3.99%
$0
$0 p.a.
80%
Get a discounted, low-fee investor loan from a convenient online lender. 20% deposit required.
4.29%
4.26%
$0
$0 p.a.
95%
A competitive 3-year fixed rate loan with a high max insured LVR.

Compare up to 4 providers

Compare home loans yourself

There are good reasons to choose a broker, and good reasons to choose to source your home loan directly from a lender. Carefully review your credit situation and preferences to decide upon which you prefer. Making the right choice the first time around will ensure that you end up with the best result possible in your situation.

Marc Terrano

Marc Terrano is a Lead Publisher at finder. He's been writing and publishing personal finance content for over five years and loves to help Australians get a better deal.

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12 Responses

  1. Default Gravatar
    MarkusMay 9, 2016

    Hi,

    Do mortgage brokers use mainly the “big 4” or do they look at smaller type lenders too, like ubank, loans.com, mortgage house and so on?
    If only some brokers use these how do I find out?

  2. Default Gravatar
    DrewJanuary 25, 2016

    If a customer was considered by a lender to be a “Good Borrower”; can the customer get as good of a deal going direct to a bank, as a broker could through their channels?

    In other words, does a broker have more bargaining power than a customer, if they were to approach to same lender.

    • finder Customer Care
      MarcJanuary 27, 2016Staff

      Hi Drew,
      thanks for the question.

      It’s definitely possible for borrowers acting independently of a broker to get a great deal. Sometimes, some of the lowest rates are offered by lenders who do not work with brokers at all to keep their costs lower.

      A broker has a distinct benefit when your situation isn’t clear cut e.g temporary visas, unusual income types, or you don’t have the time to properly evaluate your options. They’re also invaluable if you don’t really understand the home loan industry and products but want a good deal.

      We’ve seen some great broker rates on offer too, so it’s helpful to compare home loans in the market regardless of which way you go to make sure you’re informed.

      I hope this helps,
      Marc.

  3. Default Gravatar
    BeatriceApril 8, 2015

    A broker has given me 45, 000 I can borrow from a private investor however he wants the insurance up front is this normal

    • finder Customer Care
      MarcApril 9, 2015Staff

      Hi Beatrice,
      thanks for the question.

      If you’re referring to Lender’s Mortgage Insurance (LMI), this is normal to be required upfront. If you’re ever in doubt about a particular deal please seek the services of another broker or speak to a financial advisor.

      Cheers,
      Marc.

  4. Default Gravatar
    HelenMarch 20, 2015

    Hi Shirley,

    Thanks for your reply.

    I mean what sort of things are out of a mortgage broker’s authority? is there anything a mortgage broker not authorised to do in terms of advising or services?

    • finder Customer Care
      ShirleyMarch 23, 2015Staff

      Hi Helen,

      Thanks for your question.

      Mortgage brokers can not assist with investment and financial advice, this includes tax matters.

      Please refer to this page under the ‘how can a mortgage broker help me?’ for more information.

      Cheers,
      Shirley

  5. Default Gravatar
    HelenMarch 17, 2015

    what limits a mortgage broker’s authority?

    • finder Customer Care
      ShirleyMarch 18, 2015Staff

      Hi Helen,

      Thanks for your question.

      Could you please provide some further clarification to your question?

      Cheers,
      Shirley

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