Preparing financially
Using a mortgage broker in Australia
What a broker actually does, the best interests duty, how they're paid, how to verify them, and how to assess whether their recommendation is right for you.
- Mortgage brokers in Australia have a legal best interests duty and must resolve conflicts of interest in your favour when recommending a home loan.
- Brokers usually work from a lender panel, not the entire market, and are typically paid a commission by the lender you borrow from — though a direct fee can also apply in some cases.
- You should receive a credit guide and a credit proposal disclosure document setting out the recommendation, the commission and why it suits you.
- Verify the broker holds an Australian Credit Licence or authorised credit-representative status via ASIC before engaging them.
- Cross-check any recommendation against your own comparison — it reflects their panel, not necessarily the cheapest option available anywhere.
What does a mortgage broker actually do?
A broker gathers your financial position and goals, shortlists loans from their lender panel, and manages the application through to settlement — but they aren't your only path. Going directly to a bank means you only see that bank's products; a broker widens your comparison to their panel, which is usually not every lender in the market either.
The best interests duty
Mortgage brokers in Australia must act in your best interests when recommending a home loan (ASIC (Moneysmart), verified 29 Jul 2026), and must resolve conflicts of interest in your favour. This isn't just good practice — it's a specific legal duty set out in ASIC Regulatory Guide 273, giving effect to the National Consumer Credit Protection Act 2009, that brokers have been required to comply with since 1 January 2021 (Australian Securities and Investments Commission, verified 18 Aug 2026). But the duty doesn't mean every lender in Australia was considered, and the lowest rate on offer isn't automatically the best product for your situation; cost is normally an important factor, not the only one.
How brokers are paid, and what you should receive in writing
Brokers are typically paid upfront and ongoing ("trail") commissions by the lender you end up borrowing from, not by you directly — though a broker can also charge you a direct fee in some circumstances, which must be disclosed. You should generally receive a credit guide (explaining fees, complaints processes and their licensing), and a credit proposal disclosure document setting out the recommended loan, the commission the broker will receive, and why the loan suits your circumstances. If you don't receive these, ask for them before proceeding.
Verify the broker before you engage
Check that the broker holds an Australian Credit Licence, or is a credit representative authorised under one, via ASIC's registers — don't rely on a business card or website claim alone. Ask how many lenders are on their panel, how many of those they actually compared for your specific situation, and how they're remunerated — the best interests duty requires this to be explainable.
How do you assess a recommendation?
Cross-check the recommended loan against your own shortlist from comparing home loans — same scenario, same term. Ask why this loan (not just this lender) suits your situation specifically, what the total cost looks like against your other options, and what ongoing service you can expect after settlement.
What if something goes wrong?
If a broker won't explain their panel, remuneration or recommendation, or you suspect they haven't acted in your best interests, that's a red flag worth escalating — see how to complain about a lender, broker or insurer for the process, rather than assuming nothing can be done.
Practical checklist
Before committing to a broker's recommendation
- Verify the broker's Australian Credit Licence or credit-representative status
- Ask how the broker is paid, and by whom, including any direct fee
- Ask how many lenders are on their panel, and how many they compared for you
- Get the credit guide and credit proposal disclosure document in writing
- Cross-check the recommendation against your own shortlist
Relevant Delora tool
Questions for a professional
- How many lenders are on your panel, and which did you compare for me?
- Why is this loan in my best interests specifically, not just this lender?
- How are you paid, and by whom — including any direct fee to me?
- Can I have the credit guide and credit proposal disclosure in writing?
Official resources
Sources and methodology
- Using a mortgage broker — ASIC (Moneysmart) (retrieved 29 Jul 2026)
- Regulatory Guide 273: Mortgage brokers: Best interests duty — Australian Securities and Investments Commission (retrieved 18 Aug 2026)
Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.