Do mortgage brokers get you a better rate than banks?

Mortgage brokers often can't get you a better rate than if you were to go direct to a lender, but it depends. Brokers generally have access to a panel of around 30 lenders. These panels won't have a lot of the smaller online lenders who offer the cheapest loans, but the panels will differ between brokers. You could compare home loans yourself across a larger number of lenders to find yourself a better deal. However, not every borrower is eligible for a bank's lowest rate. It might be that your mortgage broker, who knows the banks' appetites, can find the lowest rate available for your situation or negotiate a bank's rate.

Can a mortgage broker give you pre-approval?

Yes, a mortgage broker can help you apply for pre-approval. Brokers will also know the banks that do and do not offer pre-approval, as well as how fast they can provide it - which can be crucial if you're coming up to auction.

How much does a mortgage broker cost?

Mortgage brokers typically don't charge a fee to borrowers. They are instead paid by commission from the banks, with both an upfront commission and a smaller ongoing commission through the life of the loan. However, there are some mortgage brokers who have chosen to charge a fee to borrowers instead of receiving a commission. Brokers may also charge fees if the borrower situation requires more work in certain complex situations.