Most people start their home loan search at the bank they already use. It’s a reasonable instinct. You know them, they know you, and the app is already on your phone.
The catch is what that gets you: one lender’s products, assessed against one lender’s criteria. If you don’t fit, the answer is no, and you’re left guessing whether the problem was you or the policy.
What a broker does differently
A broker’s starting point isn’t a product. It’s your position: income, existing debts, deposit or equity, credit history, employment type, and what you’re trying to do with the property.
That matters because lenders differ enormously on how they read the same file. Two people with identical payslips can get materially different answers depending on how a lender treats bonus income, HECS debt, casual employment, or an existing investment property.
- Panel breadth. A broker works across a panel of lenders rather than one, including smaller banks and non-bank lenders you won’t find on a comparison site.
- Policy knowledge. Knowing which lender accepts your income type is worth more than a headline rate you don’t qualify for.
- Assessment before application. Your file is matched to lender criteria before anything is lodged, so you’re not collecting knock-backs on your credit record.
- Structure, not just price. Offset accounts, split loans, redraw and repayment type change what the loan costs you over its life.
At AGS, that last point runs further than it does at a standalone broking firm, because the broker sits alongside your accountant and financial planner. If you’re likely to turn the property into an investment later, or you’re weighing a debt recycling strategy, how the loan is structured at settlement determines whether the interest is deductible down the track. Restructuring afterwards is possible. It’s also slower and more expensive than getting it right once.
Bank direct versus broker
| Going direct to a bank | Using a broker | |
|---|---|---|
| Lenders considered | One | A panel, typically 30+ |
| Who assesses your file | The lender | The broker first, then the lender |
| Legal duty owed to you | None specific | Best interests duty |
| Who pays | You (in the rate) | The lender, on settlement |
| If you’re declined | You reapply elsewhere | Your file is matched before lodging |
| Loan structure advice | Limited to that bank’s products | Across the panel |
Who pays the broker
The lender does, not you.
On most residential home loans the lender pays commission when the loan settles: an upfront amount, then a smaller trailing amount each year the loan stays active. You aren’t charged separately, and the rate you’re offered is the rate that lender would give you anyway. Brokers don’t get a better rate by marking up a worse one.
Two things follow from that.
First, commission rates are broadly similar across lenders, which removes most of the incentive to steer you toward one. Second, since 1 January 2021 brokers have owed you a best interests duty under the National Consumer Credit Protection Act. That’s a legal obligation to put your interests ahead of the broker’s own. Staff selling their employer’s loans in a branch don’t carry it.
If a fee does apply, which happens on some commercial and complex lending, it has to be disclosed in writing before you apply. Ask for that early.
When going direct still makes sense
Not every situation needs a broker.
- A straightforward loan with an existing lender. If your bank already holds your file, your circumstances are simple, and you’ve compared their offer against the market, going direct is fine.
- A relationship or package that genuinely stacks. Some professional packages bundle fee waivers that suit a specific set of circumstances.
- You’ve done the comparison yourself. If you’ve checked policy as well as price across several lenders, you’ve done a broker’s job.
The gap in the third case is usually policy rather than price. Rates are published. Serviceability criteria and the treatment of unusual income aren’t.
What’s changed since 2020
If you last arranged a loan before the pandemic, three things have shifted.
The best interests duty arrived in 2021, which changed what a broker legally owes you. The rate cycle then moved sharply: after the cuts through 2025, the cash rate has climbed again across 2026 and sat at 4.35% following the June decision. You can check where it stands now in our RBA rate tracker.
Serviceability buffers matter more in that environment. Lenders assess you at a rate above the one you’ll pay, so the loan you qualified for in 2021 isn’t the loan you qualify for now. Borrowing capacity has moved even where your income hasn’t.
Before your first appointment
Bring the paperwork and the questions.
Documents. Recent payslips or two years of tax returns if you’re self-employed, bank statements, photo ID, and statements for any existing loans or credit cards.
Questions worth asking.
- Which lenders are on your panel, and how many did you consider for me?
- Why this lender over the next-best option?
- What commission will you receive, and does any fee apply to me?
- How does this loan structure work if I turn the property into an investment later?
- What happens at the end of my fixed term?
A broker who can’t answer the second question clearly is worth a second opinion.
Where to from here
If you’re buying, refinancing, or coming off a fixed rate, a conversation costs nothing and clarifies your borrowing position before you commit to anything. AGS brokers work from all six offices, including Melbourne, Sydney, Brisbane and Hurstville, and coordinate with the accounting and financial planning teams where your loan touches tax or investment strategy.
Contact us to arrange a home loan review. Bring the questions above.
Frequently asked questions
Does a mortgage broker cost me anything? In most residential home loan cases, no. The lender pays the broker a commission once the loan settles, and the rate you’re offered is the same rate you’d get approaching that lender directly. Some complex or commercial loans carry a fee, which your broker must disclose to you in writing before you apply.
Is a broker obliged to act in my interests? Yes. Since 1 January 2021, mortgage brokers in Australia have been subject to a best interests duty under the National Consumer Credit Protection Act. Bank staff selling their own employer’s loans are not covered by that duty.
Will applying through a broker hurt my credit score? Only if multiple applications are actually lodged. A broker assesses your position against lender criteria before submitting anything, which is designed to avoid the repeated applications that damage a credit file.
Can I use a broker if I already have a home loan? Yes, and it’s one of the more common reasons people call. A broker can review your existing loan against current offers and handle a refinance, or negotiate with your current lender to keep the loan where it is.