What does a Mortgage Broker do?


A Mortgage Broker is an intermediary between a borrower, and a bank or other lender.  A Mortgage or Finance Broker will check your situation against the policies of multiple banks/lenders, and give you a variety of options to choose from.  Depending on the Broker, they can have access to over 20 different lenders, essentially giving you access to the best home loan available, without you making 20 individual enquiries.

Once you have decided which bank to apply to, your Mortgage Broker will walk you through the documents required and the banks’ paperwork.  Your Mortgage Broker will then fill out the application in full and submit it on your behalf.  Your Broker will then check on your application regularly, making sure it runs smoothly through the bank’s systems and you are kept up-to-date right up until your property settles.

How much does a Mortgage Broker charge?

After the approval and settlement of your home loan, the bank will pay your Mortgage Broker an upfront commission and ongoing monthly commissions for as long as you remain with that bank – an incentive designed to ensure the Broker puts you with a bank you’ll be happy with.  Because of the commission structure, most Mortgage Brokers won’t charge the customer a fee for their service.  You can read more about Mortgage Broker commission rates and structure here.

Why not go straight to the bank myself?

There are 3 major avenues for applying for a mortgage:

  • See a Mortgage Broker.
  • See a Banker: Bankers act in a similar sense to Brokers, however are limited to their own bank’s products.
  • Visit an online comparison site: These are actually either Mortgage Brokers themselves, or will refer you to a Banker.

It is important to understand that applying through a Mortgage Broker is an alternate path, not an additional step in the process.


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