Mortgage Broker vs Going Direct to the Bank: Which Is Better in 2026?

What a Mortgage Broker Actually Does for You

A mortgage broker acts as an intermediary between you and multiple lenders. Rather than being limited to one lender's product range, a broker compares loans from a panel of 30–60+ lenders — including major banks, second-tier lenders, credit unions, and non-bank lenders. The broker assesses your financial situation, identifies appropriate products, handles the application process, and advocates on your behalf if issues arise.

Critically, mortgage brokers in Australia are paid by the lender, not by you. Under Australia's Best Interests Duty (BID), introduced in 2021, brokers are legally required to act in your best interest — not the lender's. This is enforced by ASIC and industry bodies like the FBAA. Brokers who are FBAA accredited adhere to strict professional standards, ongoing education requirements, and a formal code of conduct.

Going Direct to the Bank: What You Get and What You Miss

Going directly to a bank means you deal with that institution's loan officers and are limited to their product range. For customers with an existing banking relationship, this can feel convenient — your accounts, transaction history, and salary credits are already visible to the lender.

However, the limitation is significant: you only see one lender's products. The bank's loan officer works for the bank, not for you — their role is to sell the bank's products. They have no obligation to tell you that a competitor offers a lower rate or better features. You also lose the benefit of a broker's market knowledge, particularly around lender credit policies, turnaround times, and which lenders are most competitive for your specific borrower profile.

• ✓Limited to one lender's product range
• ✓Loan officer works for the bank, not for you
• ✓No obligation to compare or disclose competitor rates
• ✓May suit simple refinancing with an existing lender
• ✓Can miss specialist products for complex situations

Why 70% of Australians Now Choose a Mortgage Broker

According to MFAA Industry Intelligence Service data, mortgage brokers now write over 70% of all new residential home loans in Australia — a figure that has grown consistently over the past decade. This shift reflects growing awareness among borrowers that a broker provides access to a wider market, personalised service, and professional advocacy throughout the process.

For first home buyers navigating government schemes like the First Home Guarantee, or investors structuring loans across multiple properties, a broker's expertise is particularly valuable. Self-employed borrowers, those with complex income structures, or applicants with credit blemishes also benefit from a broker's knowledge of which lenders are most likely to approve their application.