If you're staring at four major banks and a dozen smaller lenders wondering where to start, a broker is the shortcut. They sit between you and the lenders, work out which ones will say yes, and handle the paperwork. Most Australians buying a home now go this way.
Quick links
- Using a mortgage broker (ASIC Moneysmart)
- MFAA: Find a Broker
- FBAA: Find a Broker
- First Home Guarantee (Housing Australia)
- First Home Owner Grant (QLD)
- First Home Super Saver Scheme (ATO)
What a mortgage broker actually does
A mortgage broker is a licensed credit professional who compares home loans across a panel of lenders, recommends one that fits, and runs the application through to approval.
A bank lender, by contrast, can only sell you that bank's products. Walk into Commonwealth Bank and you'll get a Commonwealth loan. A broker can put your file in front of 20 to 40 lenders and pick the one most likely to approve you on the best terms.
That matters because lenders have different appetites. One rejects casual income, another accepts it. One has tight policies on apartments under 50 square metres, another doesn't care. A broker knows the quirks and steers you to a lender that fits.
Why most Aussies use one
In the December 2025 quarter, mortgage brokers wrote 76.7% of all new residential home loans in Australia. That's the highest broker market share recorded in any December quarter since the MFAA began tracking in 2013.
For first home buyers, the lean is even stronger. MFAA data shows roughly 45% of brokers' owner-occupier customers are first home buyers, compared with about 30% across the broader market. A bank can decline your loan and you'll never really know why; a broker who's been declined once has another 30 lenders to try.
Broker vs going direct to the bank
🤝 Broker
- Panel of 20–40 lenders
- Cost to you: $0 for standard residential loans
- Bound by Best Interests Duty (since Jan 2021)
- Handles the paperwork end-to-end
- Can re-shop your file if one lender says no
🏦 Direct to bank
- One lender only. That bank's products
- Cost to you: $0 (built into the loan)
- No best-interests duty. Bank staff sell their own loans
- You do the legwork, application, and comparison
- Declined = you start over with the next bank
How brokers get paid (the honest version)
For a standard residential loan, you don't pay your broker directly. The lender does, two ways:
- Upfront commission. Paid once your loan settles, typically around 0.65% to 0.70% of the loan amount plus GST. On a $600,000 loan, that's roughly $3,900 to $4,200.
- Trail commission. A smaller ongoing payment, usually 0.15% to 0.20% of the remaining balance, paid monthly for as long as you stay with that lender.
Since 1 January 2021, brokers have been bound by a Best Interests Duty under the Financial Sector Reform (Hayne Royal Commission Response) Act 2020. They legally have to prioritise your interests, not the commission. ASIC's Regulatory Guide 273 spells out how. Your broker must disclose what they'll be paid and from which lender, before you commit. If they dodge the question, find another broker.
How your broker gets paid
👤 You
The borrower
🤝 Broker
Recommends + lodges
🏦 Lender
Funds your loan
$0 direct cost
Standard residential loans
0.65–0.70% + GST
Upfront, on loan amount
0.15–0.20% p.a.
Trail, on remaining balance
Bound by Best Interests Duty since 1 Jan 2021 (ASIC RG 273). Commissions must be disclosed before you commit.
What happens in the first chat
The first conversation is usually 20 to 45 minutes, free, and over the phone or video. It's a fact-find: what you can borrow, what schemes you qualify for, and which lenders are worth approaching.
Expect questions about your income, employment type, existing debts (credit cards, HECS, car loans, BNPL), savings history, household expenses, and what you want to buy.
You don't need a folder of documents for the first call. A rough idea of your gross income, debts, and savings balance is enough. The full document list (payslips, tax returns, bank statements, ID) comes at pre-approval stage, covered in What documents you actually need for pre-approval.
What happens in your first broker call
Intro
Broker explains their lender panel + how they get paid.
Fact-find
Income, debts, savings, deposit, goals.
Borrowing estimate
Rough number + scheme eligibility (FHOG, FHG, FHSS).
Next steps
Document list + pre-approval timeline.
How to pick a good one
Three things to check before you book:
Accreditation. Look for membership of either the MFAA or the FBAA. Both set conduct standards above the legal minimum.
Licensing. Every broker must be a Credit Representative or hold an Australian Credit Licence. Verify them for free on ASIC's Professional Registers. If they don't show up, walk away.
Reviews. Google reviews, Product Review listings, and word of mouth from friends who've bought recently are worth more than slick marketing. Ask how many first home buyer settlements they did last year.
On the call, ask:
- How many lenders are on your panel, and which ones?
- Why this specific lender for my situation?
- What's the lowest-rate option you could put me into, and why aren't you recommending it?
- How much will you be paid on this loan?
A good broker answers all four without flinching.
Red flags
- Pushes one lender every time and can't explain why
- Won't tell you their commission, or gets vague about it
- Suggests fudging your expenses to get a bigger loan
- Charges an upfront fee for a standard residential loan without explaining what it covers
- Can't access major lenders, or the "panel" is suspiciously small
- Not on the ASIC register
Specifically for first home buyers
A broker who works regularly with FHBs should know the schemes inside out. As of 2026, that means:
- First Home Guarantee. From 1 October 2025, eligible FHBs can buy with a 5% deposit and avoid LMI. Place limits and income caps were removed. QLD property price caps now sit at $1,000,000 in capital city and regional centres, $700,000 elsewhere. Delivered through 33 participating lenders.
- Queensland First Home Owner Grant. $30,000 for new homes (contracts signed between 20 November 2023 and 30 June 2026) where the total home and land value is under $750,000.
- First Home Super Saver Scheme. Withdraw up to $15,000 of voluntary super contributions per financial year, capped at $50,000 total, toward your deposit.
Ask upfront: "Which schemes do you think I qualify for, and which of your lenders process them?" If they pause or guess, they don't work with enough FHBs.
What's next
Once you've found a broker you trust, the next step is pre-approval: a conditional sign-off from a lender that tells you exactly what you can borrow. That's what gets you taken seriously when you start making offers. Before the meeting, you'll need payslips, tax returns, bank statements, ID, and a few other documents. The full list lives in our pre-approval document guide.
If you've already got a property in your sights, request a conveyancing quote and we'll get your contract review moving in parallel.
Sources
- MFAA: Mortgage broker market share reaches new peak (March 2025 quarter, 76.8%)
- The Adviser: Mortgage broker share hits record December high (76.7%, Dec 2025 quarter)
- ASIC Moneysmart: Using a mortgage broker
- ASIC Regulatory Guide 273: Mortgage brokers, Best interests duty (June 2020)
- ASIC media release 20-146MR: New regulatory guidance for mortgage brokers
- Housing Australia: Unlimited places, higher property price caps for first home buyers from 1 October 2025
- Housing Australia: Home Guarantee Scheme participating lenders
- Queensland Revenue Office: First home owner grant ($30,000)
- Australian Taxation Office: First home super saver scheme
- FBAA: Finance Brokers Association of Australia
- MFAA: Mortgage & Finance Association of Australia