Preparing financially
Working with a mortgage broker
The best interests duty, how brokers are typically paid, and the questions worth asking before you rely on a broker's recommendation.
- Mortgage brokers in Australia have a legal best interests duty 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.
- Ask how many lenders are on the broker's panel and how many they compared for your situation.
- A broker, a financial adviser and a financial counsellor are three different, separately regulated roles.
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). This is a legal obligation, not just good practice — but it doesn't mean a broker automatically compares every lender in the market on your behalf.
How brokers are paid, and why it matters
Brokers typically work with a panel of lenders rather than every lender in the market, and are usually paid a commission by the lender you end up borrowing from, not by you directly. Ask how they're paid, how many lenders are on their panel, and how many of those they actually compared for your specific situation — the best interests duty requires this to be explainable, and a good broker should be able to answer clearly.
Broker vs. going direct vs. a financial adviser
Going directly to a bank means you only see that bank's products. A broker widens your comparison to their panel, but not necessarily the whole market. A financial adviser is a different, separately regulated professional for broader financial planning, not loan-specific comparison. A financial counsellor provides free help if you're experiencing financial difficulty — a distinct service from either.
Practical checklist
Before committing to a broker's recommendation
- Ask how the broker is paid, and by whom
- Ask how many lenders are on their panel, and how many they compared for you
- Ask why the recommended loan is in your best interests specifically
- 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?
- How are you paid, and by whom?
Official resources
Sources and methodology
- Using a mortgage broker — ASIC (Moneysmart) (retrieved 29 Jul 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.