A mortgage broker compares dozens of lenders on your behalf instead of the single bank you'd be limited to going direct, is typically paid by the lender (not you) so there's usually no direct cost to the borrower, and manages the application and paperwork through to settlement. Going direct to a bank means dealing with only that bank's products and policies, with no independent comparison.
Broker vs Direct-to-Bank Compared
| Factor | Mortgage Broker | Direct to Bank |
|---|---|---|
| Lender choice | Dozens of lenders across a panel | That one bank's products only |
| Cost to you | Typically no direct cost — paid by the lender | No broker fee, but no independent comparison either |
| Advocacy | Works for you, not the lender | Bank staff represent the bank's interests |
| Paperwork & follow-up | Broker manages much of this for you | You manage it directly with the bank |
How Brokers Are Paid
In Australia, mortgage brokers are typically paid a commission by the lender once your loan settles — not a fee charged directly to you. This is why using a broker generally costs the borrower nothing extra, while giving you access to a much wider comparison than walking into a single branch.
Regulation and Accountability
Brokers operate as Credit Representatives or Australian Credit Licence holders under the National Consumer Credit Protection Act 2009 (Cth), with responsible lending obligations enforced by ASIC. Bala Malvatu is a Credit Representative (ACR 573097) of Red Rock Group Pty Ltd (ACL 405961).
What a Broker Actually Does
- Reviews your income, expenses, deposit and goals to understand your financial position
- Compares suitable lenders and products from their panel based on your circumstances
- Prepares and submits your application, and liaises with the lender on your behalf
- Tracks progress and follows up through approval and settlement
- Explains loan features and trade-offs in plain language throughout
Frequently Asked Questions
Related reading: About Bala · First Home Buyer Guide 2026 · Lender Panel