Thinking about using a mortgage broker but not sure how it works? Here’s everything you need to know about working with a Brisbane mortgage broker.

What Does a Mortgage Broker Do?

A mortgage broker acts as an intermediary between you (the borrower) and lenders (banks and non-bank lenders). Instead of approaching one bank directly, a broker compares options from multiple lenders to find loans suited to your situation.

Key services include:

  • Assessing your borrowing capacity
  • Comparing loans from multiple lenders
  • Finding suitable products for your situation
  • Preparing and submitting loan applications
  • Managing the process through to settlement
  • Providing ongoing support and reviews

How Do Mortgage Brokers Get Paid?

This is the most common question we receive. Here’s how broker remuneration works:

Upfront Commission

When your loan settles, the lender pays the broker an upfront commission - typically 0.5% to 0.7% of the loan amount. For a $500,000 loan, this might be $2,500 to $3,500.

Trail Commission

Lenders also pay a small ongoing trail commission - typically 0.15% to 0.2% annually - while you remain with that lender. This encourages brokers to recommend appropriate loans and provide ongoing service.

What This Means for You

Our service costs you nothing. Lenders pay these commissions whether you go direct or use a broker, so you may as well benefit from our comparison service.

We’re legally required to recommend loans in your best interest, not based on which lender pays us more.

Broker vs Direct to Bank

Advantages of Using a Broker

Choice and Comparison A Brisbane mortgage broker compares 40+ lenders. Going direct to a bank gives you access to only their products.

Expertise Across Products We know which lenders suit different situations - self-employed, investors, first home buyers, those with credit issues.

Time Savings Instead of applying to multiple banks yourself, we do the comparison work and paperwork.

Negotiation Power We often negotiate better rates or fee waivers through our lender relationships.

Free Service You get expert help at no cost to you.

When Going Direct Makes Sense

Sometimes going directly to a lender is appropriate:

  • You have a strong existing relationship with good rates
  • Your situation is complex and you need in-house approval
  • You want a specific lender’s unique product

A good broker will tell you honestly if going direct is better for your situation.

What Information Do Brokers Need?

To assess your options, we typically need:

Personal Information

  • ID documents (driver’s licence, passport)
  • Current address and history

Income Documentation

  • Recent pay slips
  • Tax returns (especially if self-employed)
  • Employment confirmation

Financial Position

  • Bank statements (savings history)
  • Existing debts and loans
  • Credit card statements
  • Asset information

Property Details

  • Property address or type you’re considering
  • Purchase price or valuation

We guide you through exactly what’s needed.

How Long Does the Process Take?

Typical timeline from first meeting to settlement:

  1. Initial assessment - Same day to 24 hours
  2. Pre-approval - 1-3 days for most lenders
  3. Formal approval - 3-10 business days after application
  4. Settlement - Typically 30-60 days after contract

Complex situations may take longer. We manage timelines and keep you informed throughout.

Are Mortgage Brokers Regulated?

Yes, heavily regulated. Brisbane mortgage brokers must:

  • Hold an Australian Credit Licence or be an authorised Credit Representative
  • Be a member of an External Dispute Resolution scheme (AFCA)
  • Meet ongoing training and professional development requirements
  • Follow responsible lending obligations
  • Act in your best interest (Best Interests Duty)

These requirements protect you as a consumer.

Questions to Ask Your Broker

When choosing a mortgage broker, ask:

  1. How many lenders do you have on your panel?
  2. What’s your experience with my situation (first home buyer, investor, etc.)?
  3. How do you get paid?
  4. What support do you provide after settlement?
  5. Can you provide references or reviews?

A good broker welcomes these questions and answers transparently.

Why Choose Home Loan Brokers Brisbane?

We’re proud to offer:

  • 40+ lenders on our panel including major banks and specialists
  • 15+ years helping Brisbane borrowers
  • Free service - no hidden fees or charges
  • Local expertise - we know Brisbane property
  • MFAA membership - committed to industry best practices
  • Ongoing support - annual loan reviews included

Ready to Work with a Brisbane Mortgage Broker?

Book a free, no-obligation consultation. We’ll discuss your situation, answer your questions, and explain how we can help you find the right home loan.

Get Your Free Assessment

Home Loan Brokers Brisbane - Your trusted Brisbane mortgage broker since 2009.