Mortgage broker or bank?
Liam has done both jobs. Here is the difference in what each can offer you and what each owes you.
What a bank lender does
A lender in a branch works for the bank. They can offer that bank’s products under that bank’s credit policy, and they are measured against the bank’s targets. If the policy doesn’t fit you, the answer is no. They have no reason to tell you who would say yes.
What a broker does
A broker holds accreditation with many lenders and compares them for you. Modern Lending works with 40+ banks, mutuals and non-bank lenders and has no quota with any of them. We also prepare and lodge the application and deal with the lender until settlement.
The best interests duty
Since 2021, mortgage brokers have been required by law to act in the best interests of the borrower and to put your interests first where there is a conflict. Bank staff must lend responsibly, but they are not bound by that duty when recommending their own bank’s loan.
How a broker is paid
The lender pays the broker an upfront commission when the loan settles and a smaller ongoing commission while the loan runs. The lender can take the upfront commission back if the loan is repaid or refinanced early. We give you the amounts in writing before you sign. Commission rates are similar across most lenders, which removes most of the reason to favour one.
When going direct makes sense
If your bank has offered a strong rate, your situation is simple and you are happy with the service, staying can be the right call. A good broker will tell you so. Use the loan health check to test the offer first.
Questions people ask
Do I pay more by using a broker?
The rate and fees a lender offers through a broker are generally the same as going direct, and sometimes better where the broker negotiates.
Can a broker get me a loan my bank declined?
Sometimes, where another lender’s policy fits. No broker can promise approval. Every loan is assessed by the lender.
General information, last updated November 2026. Scheme figures, lender policies and duty rates change, so confirm them before you rely on them. Sources: Moneysmart: using a mortgage broker.
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