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4 Differences Between a Mortgage Broker and a Bank Lender

It’s easy to walk into the local bank and talk to a lender, or apply online for a home loan, but it is almost never the best option.


When you’re buying a house, do you go to one real estate agent, decide you will buy a house from them, and choose from what they have on the market? Do you make the best of what may actually be a poor fit for your circumstances (it’s okay, the kids can sleep in a tent)? No? Of course not – why would you limit what is available to you?

It’s really no different with the loan your use to pay for that home. Every lender, including the big four banks, second-tier lenders and specialist lenders, offers different features on various products, some of which will suit your goals and lifestyle, and some of which will not.

Industry expertise

Your mortgage broker will use their expert industry knowledge to help you sort through them and, unlike a bank lender, have more products available to them that most closely fits your needs at the best available rate.

You can expect, when it is time to make a decision and settle on one, that your Mortgage Broker may offer two or three alternatives that would all be suitable, with a recommendation for one in particular that stands out.

The MFAA difference

MFAA Approved Mortgage Brokers must meet higher education and professional development standards than industry regulation demands, and they regularly attend training and development courses run by the MFAA and various lenders.

They are also answerable to the MFAA Tribunal, which imposes penalties on members who are found to have breached the MFAA’s Code of Practice.

MFAA Approved Mortgage Brokers not only have the support and resources to be the best, their livelihoods depend on it.

Let’s talk commission

Of course, Mortgage Brokers earn commissions. This doesn’t mean your Mortgage Broker is not on your side. Whether you see a Mortgage Broker or a bank lender, that person in front of you earns money by selling you a home loan. The difference, then? The bank lender is there to sell you one of their own loans. The Mortgage Broker is there to help you locate a product from a choice of lenders that works for you. So when you come back to them and you’re thinking about refinancing, you are comfortable recommending them to your friends and family.

Any questions? Let us help you. Call Chris today on 0490 075 039 or send an email to

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