Mortgage Broker vs Bank Australia 2026 — Which Gets You a Better Deal?

Most Australian home buyers go straight to their bank when getting a mortgage. But research consistently shows that mortgage brokers secure lower rates and better loan features for their clients. Here’s the honest comparison.

Mortgage Broker vs Bank — The Numbers

How Brokers Get Paid

Brokers receive an upfront commission from the lender (typically 0.65% of the loan) and a trail commission paid annually (0.15%/year while the loan is open). You pay nothing directly. Since 2021, all brokers must also act in your “best interest” under the Best Interests Duty — they cannot recommend a product that pays them more commission unless it’s genuinely the best option for you.

When a Broker Is Better

• First home buyers who don’t know the market
• Self-employed borrowers with complex income
• Anyone with a past credit issue needing specialist lenders
• Investment property loans with complex structuring
• When you want someone else to handle the application process

When Going Direct Makes Sense

• You’re an existing customer with a long-term relationship and significant savings/investments with the bank
• You’ve already done your research and know exactly which product you want
• You’re refinancing a small loan where broker commissions might create conflicts

Broker Statistics — Australia 2025

More than 70% of all new Australian home loans are now written through mortgage brokers (MFAA 2024). The industry’s growth reflects borrowers recognising that brokers consistently deliver better outcomes — lower rates, more suitable products, and a better application experience.

Disclaimer: General information only. Not financial advice. Always consult a licensed professional before making financial decisions.