A mortgage broker is a licensed intermediary who finds a home loan for you from a panel of lenders, prepares and lodges the application, and manages it through approval to settlement. In Australia a broker must act in your best interests, and in most cases the lender pays the broker, not you.

The value is in the matching: lenders read the same income, deposit and property very differently, and a broker knows which lender will say yes, on what terms.

What does a broker actually do, step by step?

  1. Understands what you are trying to do. Buying, refinancing, investing or building, the timeline, and what matters most to you: the lowest rate, an offset account, flexibility, or simply getting approved.
  2. Assesses your position. Income in all its forms, debts, living costs, deposit and credit history, tested against how lenders calculate borrowing power. The borrowing power calculator gives the first figure; a broker checks it against real lender policy.
  3. Compares lenders. Not just rates: policy on your income type, the property, the deposit source, turnaround times and features.
  4. Recommends a loan and explains why. You receive a written explanation of the recommendation and a credit guide setting out how the broker is paid.
  5. Prepares the application. Collects and checks the documents, writes the case to the lender, and lodges it. The documents checklist lists what is usually needed.
  6. Manages approval. Answers the credit assessor, orders the valuation, and deals with conditions before they become delays.
  7. Coordinates settlement. Works with your conveyancer so the loan funds on the day.
  8. Stays on the loan afterwards. A good broker reviews the rate and structure as your situation and the market change.

Is a broker legally required to act in my interest?

Yes. Since 1 January 2021 mortgage brokers have been bound by a best interests duty: the recommended loan must be in your interest, and your interest comes first in any conflict. A broker must also give you a credit guide, check the loan is not unsuitable and disclose their commission. Links operates as Credit Representative 580078 under Australian Credit Licence 389328, which you can check on ASIC’s professional registers.

How is a broker different from a bank?

A bank’s lending specialist offers that bank’s products; a broker compares a panel, usually dozens of lenders including major banks and non-banks. That matters most when your situation is not standard, such as self-employed income, a gifted deposit, a small apartment or a recent job change. The broker vs bank guide sets out when going direct is perfectly fine and how brokers are paid.

What does a broker not do?

  • Approve the loan. The lender decides. A broker improves the odds by choosing the right lender and presenting the file properly.
  • Give legal or tax advice. Contracts belong with your conveyancer or solicitor, and tax questions with your accountant.
  • Value the property. The lender’s valuer does that, and the valuation can differ from the price you agreed.
  • Choose the property. A broker can tell you what a property means for your loan, such as a strata issue or a lender’s apartment size limit, but the purchase decision is yours.

When is a broker most useful?

When the choice of lender changes the outcome: first home buyers combining the 5% Deposit Scheme, NSW duty relief or a guarantor; self-employed and contract workers, where lender policy varies most; refinancers who want the whole panel checked, not just a retention offer; and investors structuring a second or third loan. The guide to choosing a broker lists the questions worth asking.

What does a broker cost?

At Links there is no broker fee on most loans: the lender pays a commission, disclosed to you in writing before you apply. Some complex or commercial loans carry a fee, and that is agreed up front. Lenders pay brokers on the same commission schedule whichever loan is chosen within a lender’s range, and the best interests duty applies regardless.

What does a broker do after settlement?

The work does not stop when the keys are handed over. A broker who stays on the file will:

  • Check the rate against the panel every year or two, and ask your lender to reprice before suggesting a move. The guide to asking for a better rate explains how repricing works.
  • Diarise a fixed-rate expiry so the loan does not roll onto a higher revert rate unnoticed. See when your fixed rate ends.
  • Plan the next step, whether that is releasing equity for a renovation, buying an investment property or upgrading, so the borrowing happens in an order that keeps future options open.
  • Review the structure when life changes: a new job, a new child, a separation or retirement can each make a different loan more suitable.

The loan health check gives a quick score on how your current loan compares, which is often where that conversation starts.

What should you have ready for the first call?

A first conversation works best when a few facts are to hand. None of it needs to be perfect; it lets the broker test lender policy against your real position rather than a guess.

  • Your income: recent payslips, or the last two tax returns if you are self-employed.
  • Your debts: car loans, personal loans, HECS or HELP, and the limits on every credit card, used or not.
  • Your deposit: how much, where it sits and where it came from, including any gift.
  • What you want to buy: the price range, the suburbs and the property type.
  • Your timing: when you want to exchange, and anything fixed, such as a lease ending.

What does a broker check that a calculator does not?

Online calculators use one set of assumptions. Lenders do not. Before a loan is recommended, a broker checks the points that change the answer between lenders:

  • The assessment rate. Lenders test your repayments at about 3 percentage points above the rate you would actually pay, so the question is whether you pass at that higher rate.
  • How your income is counted. Overtime, bonuses, commission, casual loadings and self-employed income are each counted differently, and some lenders count more of them than others.
  • Credit card limits. Lenders assess the limit, not the balance, so an unused card still reduces what you can borrow.
  • Living expenses. Your declared spending is compared with the lender’s own benchmark, and the higher of the two is used.
  • The property itself. Small apartments, high-density postcodes and unusual properties narrow the lender list before your income is even considered.

This is why two lenders can give very different answers on the same file. The borrowing power calculator gives a starting figure; the lender comparison gives the real one.

What does a typical timeline with a broker look like?

From first call to keys, when documents arrive promptly
Stage Typical time
First call and document check A day or two
Pre-approval, once documents are complete One to five business days
Searching and making offers Weeks to months
Formal approval after the contract Three to ten business days
Exchange to settlement Usually 42 days in NSW

The broker’s job through all of it is to keep the loan moving: chasing conditions, answering the lender’s questions and making sure approval lands before the contract needs it.

Can a broker help with self-employed, complex or declined files?

A broker earns their keep most on files that fall outside a lender’s standard checklist. The work is matching the file to written lender policy before anything is lodged:

  • Self-employed income: lenders differ on how many years of tax returns they want, whether they add back depreciation and one-off costs, and whether they will consider business activity statements instead. See self-employed lending.
  • A past decline: the first step is to find out why, then go to a lender whose policy fits, rather than reapplying broadly and adding enquiries to the credit file.
  • Unusual income or property: contract work, multiple jobs, small apartments or mixed-use buildings narrow the lender list, so knowing the list matters.

The complex lending guide sets out the common situations and what lenders look for in each.

Questions people ask

Do mortgage brokers get better rates than banks?

Often, because a broker can put competing offers in front of a lender and knows where pricing is sharpest that month. Some direct-only lenders are not on broker panels, so a good broker will tell you when going direct is the better deal.

How long does a broker take to get a loan approved?

Pre-approval commonly takes a few business days once documents are complete. Formal approval after a contract usually takes one to two weeks, depending on the lender, the valuation and how quickly questions are answered.

Does using a broker affect my credit score?

No more than applying directly. A broker should only submit an application once a lender is chosen, so your file does not collect multiple credit enquiries.

Can a broker help if the bank said no?

Often. A decline is usually one lender’s policy, not a verdict on you. Another lender may treat the same income, debt or property differently.

Is my information shared with every lender?

No. Your details go to the lender you choose to apply with, under the privacy consent you sign. Comparing lenders uses their policies and pricing, not a shotgun of applications.

Charles Touma handles every Links file himself, from the first call to settlement, across a panel of more than 70 lenders through Connective. If you want to know what a broker would do with your situation, book a free 30-minute call. General information only, not credit advice. Sources: National Consumer Credit Protection Act 2009 and the best interests obligations in force since 1 January 2021.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.