What Is a Mortgage Broker? How They Work and Why You Need One

What is a mortgage broker, and why do so many homebuyers and investors rely on them? 

Put simply, a mortgage broker is a licensed professional who connects you with lenders and helps you find a loan that suits your needs. They play a crucial role in simplifying the home loan process, offering access to a wide range of loan options that you might not get from a single bank. 

Whether you're buying your first home or expanding your property portfolio, a broker can offer insights, comparisons, and support tailored to your financial situation. 

Let’s explore exactly what brokers do, how they’re different from banks, and how to choose the right one for your journey.

What is a Mortgage Broker?

A mortgage broker is a licensed professional who acts as a middleman between borrowers and lenders during the home loan process. Rather than representing a single bank or financial institution, brokers work independently to assist individuals in finding a loan that fits their financial situation. 

In Australia, all mortgage brokers must hold an Australian Credit Licence or act as a credit representative of a licensed provider, regulated by the Australian Securities and Investments Commission (ASIC). This ensures they meet strict compliance standards and provide credit assistance that’s in the best interest of the borrower. 

As part of the mortgage broking industry, brokers play a crucial role in helping potential homeowners and property investors make informed, confident financial decisions.

What Does a Mortgage Broker Do?

Buying property comes with plenty of decisions — choosing the right loan shouldn't be one you make alone. That’s where a mortgage broker steps in with practical help at every stage.

So, what does a mortgage broker do? Here's a breakdown of their key responsibilities:

• Connects borrowers with lenders: Brokers have access to a wide range of banks and lenders, giving you more choice than going directly to a single institution.

• Assesses your financial circumstances: They look at your income, expenses, credit history, and goals to match you with suitable home loan options.
  

• Provides personalised loan recommendations: Based on your situation, they recommend loan features, terms, and repayment structures that best fit your needs.
  
  
• Compares loan products: Using specialised loan comparison tools, brokers review interest rates, fees, and loan terms to help you find the most competitive deal.
  
  
• Handles the loan application process: From the application stage to pre-approval and final approval, they manage the paperwork and liaise with lenders.
  
  
• Explains the fine print: Brokers walk you through loan contracts, lender policies, and help you understand all the lender requirements before you commit.
  
  
• Prepares supporting documents: They assist in gathering and organising everything needed to submit complete and accurate loan applications.
  
  
• Offers insight into loan strategy: Whether it’s choosing between fixed or variable rates, considering a split loan, or planning for extra repayments, brokers guide you based on your long-term goals.
  
  
• Communicates with all parties: From real estate agents to solicitors, they coordinate with everyone involved to ensure a smooth loan journey.
  
  
• Supports post-settlement: Even after approval, brokers can help you reassess your loan, refinance, or explore new options as your financial future evolves.

These tasks make brokers a valuable partner in the home-buying process, offering support from start to finish.

Mortgage Broker vs Bank: What’s the Difference?

Comparing banks to mortgage brokers helps highlight the advantages and limitations of each option. Here’s how they stack up, feature by feature:

1. Access to Lenders

Banks: Only offer their own loan products, which limits your choice.

Mortgage Brokers: Give you access to a wide range of lenders through a network of lenders, providing more loan options to suit your personal circumstances.

2. Loan Variety

Banks: Offer a specific set of mortgage loan products, typically without flexibility for customisation.

Mortgage Brokers: Present suitable loans from multiple lenders, tailored to your needs, including deposit loans, split loans, and investment property options.

3. Personalised Advice

Banks: Provide general advice based on in-house offerings, not always aligned with your financial future.

Mortgage Brokers: Deliver advice based on your financial circumstances, credit history, and goals, aiming for the most suitable loan options.

4. Application Process

Banks: You handle the loan application process yourself, from paperwork to follow-ups.

Mortgage Brokers: Guide you through every stage, from the application stage to loan approval, and handle the admin on your behalf.

5. Product Comparison

Banks: Can’t offer comparisons — you only see their rates and terms.

Mortgage Brokers: Use loan comparison tools to compare interest rates, loan features, and fees across lenders, helping you make informed decisions.

6. Negotiation Power

Banks: Often have set loan terms and limited room for negotiation.

Mortgage Brokers: Can negotiate on your behalf with lenders, often achieving favourable loan terms and competitive rates.

7. Ongoing Support

Banks: Support may end after the loan settlement is complete.

Mortgage Brokers: Offer ongoing help with refinancing, reviews, and loan strategy as your needs change.

How Do Mortgage Brokers Get Paid?

Mortgage brokers typically earn money through commissions from lenders once your loan application is approved and the loan settles. There are two main types of commissions:

• Upfront commission: This is a one-time payment made by the lender to the broker based on a percentage of the total loan amount.
  
  
• Trail commission: This is an ongoing payment the broker receives each year for the life of the loan, as long as you keep it with that lender.
  
  

In most cases, you won’t have to pay your broker directly. Their services are usually free to the borrower, with the lending institution covering the cost. However, it’s still important to ask whether any upfront fees or application fees apply, especially if your situation is complex.

Some borrowers worry that brokers might favour lenders who offer higher commissions. That’s a valid concern, but under Australian law, brokers must act in your best interests. 

They’re legally required to recommend suitable loans based on your individual circumstances, not just what pays them the most.

A transparent broker will disclose:

• How they’re paid
  
  
• If certain lenders are excluded from their network of lenders
  
  
• Whether they receive different commission rates from different providers

Always feel comfortable asking questions about fees and payments. A good broker will be open and clear about their compensation and how it may or may not influence their recommendations.

Why Choose Kelly Brothers Finance for Your Home Loan

We Keep It Simple

We make the home loan process easy to follow — no jargon, no confusion. Buying a home is hard enough, so we keep everything clear and stress-free.

We're Family

As a family-run team in North Brisbane, we care about getting you the right loan for your goals and lifestyle. Whether you're a first-home buyer or building a property portfolio, we treat you like one of our own.

Local Knowledge That Matters

With deep roots in Greater Brisbane and Queensland, we offer local insights that help match you with suitable home loan options.

Access to More Lenders

We work with a broad network of banks and non-banks to give you more choices and better mortgage products.

Support That Stays

Your loan needs attention over time. Hence, we stay in touch and help you review it as your life or the market changes.

Tailored Loan Strategies

Everyone’s different. We build loan plans based on your credit score, income, and long-term goals — whether buying, refinancing, or investing.

5-Star Reviews Speak for Themselves

First-home buyers and seasoned investors love working with us. Just check out our Google Reviews and see why.

Our Services



• Home Loans – First-home buyers, refinancers, and upgraders
• Commercial Loans – For business owners and commercial property purchases
• Investment Loans – Tailored for growing your property portfolio
• Car Loans – Competitive vehicle finance for personal or business use

Ready to talk? Call us today at (07) 3847 9450 or visit kellybrothersfinance.com.au for a free consultation and expert support from your trusted Brisbane mortgage brokers.

Frequently Asked Questions (FAQs)

Is it worth using a mortgage broker?

Yes. A broker helps you access a wide range of mortgage lenders, saving time and improving your chances of finding an ideal loan. They guide you through the essential steps, from comparing mortgage deals to improving your credit score before applying.

How do you choose the right mortgage broker?

Start by looking for reputable brokers with strong track records and local knowledge of the property market. Ask if they offer a range of types of loans, understand your financial situation, and have experience working within today’s lending landscape.

Are mortgage brokers regulated?

Yes, in Australia, mortgage brokers are licensed and must comply with regulations set by ASIC to protect borrowers. They must recommend only suitable mortgage products and act in your best interests, regardless of lender incentives.

How do mortgage brokers work?

Mortgage brokers act as an intermediary between borrowers and multiple mortgage lenders, helping you compare options and apply for the best fit. Their primary role is to assess your situation and recommend loans based on your goals, income, and credit score.

What is the job description of a mortgage broker?

A mortgage broker's primary role includes assessing financial circumstances, conducting a credit check, and recommending suitable mortgage products. They liaise with lenders, submit paperwork, and ensure the loan aligns with your goals in the current lending market.

Can a mortgage broker also assist with personal loans?

Yes, many brokers also assist with personal loans, especially when consolidating debt or financing alongside a home loan. A well-rounded broker will know which types of loans best suit your goals and the current lending landscape.

Ready to Find the Right Home Loan for 2025? Let’s Make It Happen

Finding the right home loan in 2025 doesn’t need to feel overwhelming, especially with the right team supporting you. Whether you're a first-time buyer, refinancing, or an investment buyer planning your next move, working with experienced Brisbane mortgage brokers can help you make smart, stress-free decisions. 

At Kelly Brothers Finance, we offer a free consultation to walk you through your options and tailor a solution that suits your goals. Give us a call at (07) 3847 9450 or visit kellybrothersfinance.com.au. 

We’re here to help you find a financing solution that works for today and tomorrow.