What Does a Mortgage Broker Actually Do? (And Who Pays For It)
When I tell people I’m a finance broker, the polite follow-up is usually some version of: ‘so… what do you actually do?’ Fair question. Here’s the honest answer.
A mortgage broker sits between you and the lenders. Instead of you walking into one bank and hearing what that bank offers, a broker looks across many lenders - banks, credit unions, non-bank lenders - and works out which of them actually suit your situation, then runs the application process with you from start to settlement.
The part people underestimate: lenders disagree about you
The same person - same income, same deposit, same history - can get genuinely different answers from different lenders. One assesses self-employed income conservatively; another understands it. One dislikes the unit you’re buying; another doesn’t blink. These policies aren’t published on comparison sites, and they change.
Knowing that landscape is the core of the job. It matters most for people who don’t fit the tidy mould: self-employed, single parents, mixed income streams, returning to work, separated and starting again. If a bank has told you ‘no’, that’s often the beginning of the story, not the end of it.
Who pays the broker?
In most cases the lender pays the broker a commission when your loan settles - for the majority of home loans, you don’t pay the broker directly. Brokers are legally required to disclose how they’re paid, and since 2021 we operate under a Best Interests Duty: we must act in your best interests, not the lender’s. Banks are not subject to the mortgage broker best interests duty in the same way, but they do remain bound by other statutory, contractual and industry obligations.
It’s always fair to ask a broker how they’re paid, how many lenders are on their panel, and why they’re recommending a particular loan. A good broker will enjoy answering.
What working with me looks like
First, a conversation about your goals - not just the loan you want, but the life it’s attached to. Then I do the comparing: rates, fees, features and those unpublished policies, explained in practical terms. Then the paperwork, where I do the chasing and you stay informed. And after settlement, I stay in touch - reviewing your rate, and occasionally calling you out of the blue because I’ve negotiated a better deal.
That last part isn’t marketing. Ask my clients - it’s on the reviews page.
When you don’t need a broker
Honesty matters here: if your situation is simple, your deposit is strong, and you’re happy with your current bank’s offer, you might do perfectly well going direct. A broker’s value scales with complexity, comparison, and the time you’d rather not spend. For most people buying, refinancing or investing, that value is real - but it should be demonstrated, not assumed.
If you’d like it demonstrated, the first chat is free and obligation-free. Worst case, you leave with better questions.
Have a lending question?
Twenty minutes, no pressure, no cost - and you’ll know exactly where you stand.