Walk into your local bank branch and you'll get one set of products, one credit policy, and one answer. Work with a mortgage broker and you'll get access to dozens of lenders competing for your business. In a market where the right lender can save you tens of thousands over the life of your loan, that difference matters.
Australians Are Choosing Brokers — in Record Numbers
The shift towards mortgage brokers in Australia isn't a trend — it's a fundamental change in how Australians get home loans. According to the Mortgage & Finance Association of Australia (MFAA), brokers settled 77.3% of all new residential home loans in the September 2025 quarter, a record high. That's up from around 57% in 2017. In dollar terms, brokers settled over $130 billion in new home loans in that quarter alone.
There's a reason nearly 8 in 10 borrowers now choose a broker over going direct to a bank: more choice, better outcomes, and someone who's legally required to act in your best interests.
The Core Difference: One Product Range vs Many
When you walk into a bank, you're limited to that bank's products. Their rates, their credit policies, their loan features. If your situation doesn't fit neatly into their box — maybe you're self-employed, have irregular income, or you're buying something a little different — you'll often get a "no" or a less competitive offer.
A mortgage broker, on the other hand, compares home loans across a wide panel of lenders — including the major banks, smaller banks, credit unions, and specialist non-bank lenders. The typical broker accesses around 30 to 65 lenders through their aggregator panel, meaning they can match your specific situation to the lender most likely to approve you on the best available terms.
"Each lender uses their own serviceability calculator and credit policy. The difference between the right and wrong lender for the same borrower can be significant — in both the rate you pay and how much you can borrow."
It's Not Just About the Rate
Many borrowers focus solely on the interest rate, but the right loan is about much more than that. Features like offset accounts, redraw facilities, repayment flexibility, and the ability to split between fixed and variable can have a major impact on your finances over the life of the loan.
Then there's borrowing power. Different lenders assess your income, expenses, and existing debts using different methodologies. A broker knows which lenders are more favourable for your specific circumstances — whether that's because you're a contractor, you have HECS-HELP debt, or you're using rental income to service the loan.
Broker vs Bank: At a Glance
Bank: 1 (their own products only). Broker: Typically 30–65 lenders across major banks, smaller banks, credit unions, and non-bank lenders.
Both are generally free to the borrower. Banks pay brokers a commission when your loan settles — you don't pay extra for using a broker.
Since 2020, Australian mortgage brokers are bound by a Best Interests Duty — a legal requirement to prioritise your interests above their own when recommending a loan.
Brokers excel with self-employed borrowers, irregular income, SMSF lending, and construction loans — areas where bank branches often lack specialist expertise.
A good broker reviews your loan regularly and can negotiate a better rate or refinance you when the market shifts — your bank won't do that proactively.
The Best Interests Duty: Your Legal Protection
One of the most important changes in Australia's lending landscape came in 2020, when the federal government introduced the Best Interests Duty (BID) for mortgage brokers. This means your broker is legally obligated to recommend the loan that's in your best interests — not the one that pays them the highest commission.
Bank staff, by contrast, are not subject to the same obligation. Their role is to sell their employer's products. They may offer you a competitive deal, but they're not required to tell you if a better option exists elsewhere. According to the MFAA's 2025 industry report, brokers are overwhelmingly positive about the impact of BID, with most citing improved client trust as a key outcome.
Every mortgage broker in Australia must hold an Australian Credit Licence (ACL) or be an authorised credit representative under a licensee. You can verify any broker's credentials through ASIC's professional registers or by checking their membership with industry bodies like the MFAA or FBAA.
When Might a Bank Be the Right Choice?
To be fair, going direct to a bank can sometimes make sense. If you have a straightforward financial situation — stable PAYG income, a solid deposit, clean credit history, and you're happy with your existing bank's products — the convenience of dealing directly can be appealing. Some banks also offer exclusive products or pricing for existing customers that aren't available through brokers.
That said, even in simple situations, it's worth getting a broker to run a comparison. You might find that a lender you hadn't considered offers a materially better deal. There's no cost to you for that comparison, and you're under no obligation to proceed.
What About the Big Banks Fighting Back?
It's worth noting that Australia's major banks are actively working to win back market share from the broker channel. Some have invested heavily in their direct-to-customer offerings and digital platforms. Commonwealth Bank, for example, writes a significant portion of its mortgages in-house without broker involvement.
For borrowers, this competition is a good thing. It means banks are working harder to offer competitive rates and faster turnaround times, whether you come through a broker or walk in directly. But it also means the landscape is more complex than ever — which is exactly when independent advice becomes most valuable.
The Bottom Line
For most Australians, a mortgage broker delivers a better outcome than going direct to a single bank. You get access to more lenders, more competition for your loan, expert guidance through the process, and a legal duty of care that bank staff simply aren't subject to.
At Best Option Loans, our brokers have access to over 50 lenders — including the major banks, second-tier lenders, credit unions, and specialist non-bank lenders. Whether you're buying your first home, refinancing, investing, or dealing with a complex lending scenario, we'll find the lender that fits your situation best.
Disclaimer: This article provides general information only and does not constitute financial advice. Your personal circumstances may differ. Credit criteria, lender policies, and market conditions are subject to change. We recommend speaking with a qualified mortgage broker or financial adviser before making any financial decisions. Best Option Loans Pty Ltd holds an Australian Credit Licence and is a member of the MFAA.
