Mortgage Brokers Australia — Complete Guide (2026)
A mortgage broker is a licensed professional who helps you find and apply for a home loan — comparing products across multiple lenders rather than offering you a single bank’s range. In Australia, around two-thirds of new home loans are arranged through mortgage brokers (MFAA data, 2025).
This hub page covers everything you need to know about working with a mortgage broker in Australia, from how brokers are paid to your legal protections under the best interests duty.
What Does a Mortgage Broker Do?
A mortgage broker acts as an intermediary between you (the borrower) and lenders. They:
- Assess your financial situation and borrowing capacity
- Search their lender panel (typically 20–50+ lenders) for suitable home loan options
- Prepare and lodge your loan application
- Manage communication with the lender through to settlement
- Assist with paperwork, valuations and conditions
Brokers save time by doing much of the legwork for you — and can access lenders and products you may not find through direct searching. Their service is generally free to you — they are paid by the lender via commission.
How Mortgage Brokers Are Regulated in Australia
Mortgage brokers in Australia are regulated under the National Consumer Credit Protection Act 2009 (NCCP Act) and must hold — or operate under the authority of — an Australian Credit Licence (ACL) issued by ASIC.
Key regulatory requirements:
- Must hold or authorise under an ACL
- Must comply with responsible lending obligations
- Must act in the best interests of the client (best interests duty, introduced April 2021)
- Must disclose commissions and conflicts of interest
- Must be a member of an ASIC-approved external dispute resolution scheme (Australian Financial Complaints Authority — AFCA)
ASIC maintains the Credit Representative Register where you can verify any broker’s licence status.
In This Section
How Brokers Work
- How Mortgage Brokers Work in Australia — step-by-step process from first meeting to settlement
- Mortgage Aggregator vs Broker vs Bank — who does what in the lending ecosystem
Choosing Between a Broker and Going Direct
- Mortgage Broker vs Bank — Which Should You Use? — pros and cons of each approach
- Mortgage Broker vs Financial Adviser — understanding the difference
Broker Fees and Commissions
- How Are Mortgage Brokers Paid? — upfront commission, trail commission, and clawbacks explained
Finding a Broker
- How to Find a Good Mortgage Broker — what to look for and how to check credentials
- Best Mortgage Brokers Australia — overview of major broker groups
- Online Mortgage Brokers Australia — digital-first brokers and platforms
Your Rights and Protections
- Mortgage Broker Best Interests Duty — your legal protections since April 2021
- Questions to Ask Your Mortgage Broker — before you commit to an application
Specific Situations
- Using a Mortgage Broker as a First Home Buyer — why brokers are especially valuable for FHBs
Broker vs Bank — At a Glance
| Mortgage Broker | Going Direct to a Bank | |
|---|---|---|
| Lenders compared | 20–50+ | 1 |
| Cost to you | Free (paid by lender) | Free |
| Suited to | Complex situations, time-poor buyers | Simple applications, existing customers |
| Negotiation | Broker negotiates on your behalf | You negotiate directly |
| Expertise | Product comparison, application preparation | Deep knowledge of own products only |
The Best Interests Duty — Your Key Protection
Since April 2021, mortgage brokers in Australia are legally required to act in your best interests — not just recommend a “suitable” product. This means:
- The loan must be the best option for your needs and objectives (not just adequate)
- The broker cannot prioritise a lender that pays higher commission if a better option exists
- Brokers must disclose all commissions and any conflicts of interest
- They must take reasonable steps to verify your financial situation
If a broker recommends a product that is not in your best interest, they may be in breach of their legal obligations. You can complain to AFCA if you believe a broker acted improperly.
Related Mortgage Guides
This page provides general information about mortgage brokers in Australia. It is not personal financial or credit advice. For advice tailored to your borrowing situation, speak with a licensed mortgage broker who holds (or is authorised under) an Australian Credit Licence. Find one through MoneySmart.