Mortgage Broker

Plain-English definition. A mortgage broker is a credit professional who works between a borrower and a panel of lenders, helps compare home-loan options and can assist with the application through to settlement.

How it works in Australia. A broker must hold an Australian Credit Licence or be authorised as a credit representative. ASIC Moneysmart recommends checking the relevant ASIC professional register before relying on a broker. Mortgage brokers must act in the consumer's best interests when providing credit assistance.

Lenders generally pay broker commission, which can include upfront and ongoing payments. A broker can also charge a direct fee, but Moneysmart says the fee should be clearly disclosed in a written quote. Do not assume every broker is free or that every lender is available. Panels, commissions and direct fees can differ.

Practical example. A borrower receives two written options for a $600,000 loan. One has a lower rate but no offset account. The other has a higher rate and an annual package fee. The broker should explain why the recommended features fit the borrower's stated needs, which alternatives were considered and how the costs compare. The borrower can reproduce the figures in the Loan Comparison Calculator, but the calculator does not approve a loan or assess the broker's compliance.

Questions to ask.

• Which lenders are on your panel, and which are not?
• Why is this recommendation in my best interests?
• What fees, commissions and other benefits apply?
• Can you show another suitable option, including a lower-cost option?
• What assumptions were used for rates, repayments and offset savings?

Read the Best Interests Duty glossary entry and the July 2026 ASIC mortgage broker review update for the current regulatory context.

Common confusion. A broker recommendation is not loan approval and does not guarantee the cheapest future outcome. A broker can only compare products available through the broker's panel, and lender rates, policies and valuations can change.

Sources. ASIC Moneysmart: Using a mortgage broker, updated 18 June 2026, and ASIC's July 2026 speech on the best interests duty review, checked 24 July 2026.