In the December 2025 quarter, mortgage brokers settled 76.7% of all new residential home loans written in Australia — the highest December-quarter share on record, according to MFAA data. In value terms, that was $142.2 billion in home loans settled through brokers in a single quarter. Ten years ago, the broker share was closer to 50%. Understanding why that shift has happened is useful for anyone currently deciding how to approach their home loan.
What a mortgage broker actually does
A mortgage broker is a licensed credit intermediary. Their job is to assess your financial situation, identify suitable loan products from their lender panel, structure the application, submit it on your behalf, and manage the process through to settlement. They do not lend money themselves — they connect you to lenders who do.
In Australia, mortgage brokers must hold an Australian Credit Licence (ACL) or be an authorised credit representative under one. They are bound by a statutory Best Interests Duty, introduced after the Royal Commission into Misconduct in Banking (2019), which requires them to act in the customer’s best interests — not the lender’s.
What a bank can offer you
When you apply directly through a bank, you see one lender’s products, one set of rates, and one set of lending policies. The person you speak with is employed by the bank and is trained on that bank’s products only. They have no obligation to tell you that a competitor lender has a lower rate, a more favourable policy for your income type, or a better product for your circumstances. That is not a criticism — it is simply the structure of how direct lending works.
Banks can be efficient for straightforward applications where you have a long-standing relationship, significant assets with that institution, and a clean standard income situation. For these borrowers, going direct can be quick and uncomplicated.
Where brokers provide the clearest advantage
Lender access
A broker with a large lender panel gives you access to major banks, regional banks, credit unions, and non-bank lenders simultaneously. Serviceability models vary significantly between lenders for identical financial profiles — the maximum loan amount one bank will approve can differ substantially from another lender assessing the same application. A broker can identify which lender’s model is most favourable for your income and debt situation before any application is submitted.
Complex income situations
Self-employed borrowers, contractors, those with multiple income streams, investors, and medical or legal professionals all face income assessment approaches that vary significantly between lenders. Major banks often shade or restrict self-employed income heavily, while some non-bank lenders assess the same income far more generously. Finding the right lender for a complex income situation is difficult to do from the outside — it requires knowledge of each lender’s internal policy.
No cost to the borrower
Mortgage brokers in Australia are paid a commission by the lender when a loan settles — typically an upfront commission and an ongoing trail commission. The borrower pays nothing for the broker’s service. Brokers are required under the Best Interests Duty to disclose their commissions, and to demonstrate that their recommendation is in the client’s interest rather than commission-driven.
Rate negotiation
Lenders routinely offer new customers better pricing than existing customers who don’t ask for a review. A broker negotiating on behalf of a client — with the implicit threat of moving the business elsewhere — often extracts pricing that a walk-in customer wouldn’t see on the rate card. This is especially true for borrowers with strong profiles: high income, low LVR, clean credit.
What to look for in a broker
Not all brokers are equal. The key things to assess:
- Lender panel size — a broker on a large aggregator platform with 40+ lenders gives you meaningfully more options than one with 10–15
- Specialist experience — a broker who regularly handles self-employed clients, medical professionals, or investors will know lender policies in those areas in ways a generalist won’t
- ACL or authorised credit representative number — check the ASIC Connect register at connectonline.asic.gov.au to verify their licence
- Reviews and reputation — Google reviews from real clients reflect service quality more reliably than marketing claims
- Post-settlement service — the best brokers conduct annual loan reviews to ensure you’re not paying a loyalty premium on an outdated rate
The honest answer on when to go direct
If you have a simple application (PAYG employment, standard income, straightforward property, long-standing relationship with your bank), and you’ve already compared rates independently — going direct is not a bad choice. Speed can be an advantage if your bank knows your financials well.
But for most borrowers — especially in 2026’s more complex lending environment, with DTI caps, higher rates, and serviceability variances across lenders — comparing multiple options through a broker before committing is nearly always worth the time it takes.
Tiger Mortgage is an independent broker with access to 40+ lenders. We are paid by the lender on settlement — there is no cost to you for our service. Our principal, Raymond Liao, is CPA qualified with six years inside Westpac’s lending team before founding Tiger Mortgage in 2021.
Disclaimer: This article is general information only and does not constitute financial advice. Speak to a licensed mortgage broker about your specific situation.
