When you're looking for a home loan, you have two main paths: go directly to a bank, or work with a mortgage broker. Both can get you a loan, but the experience and the outcome can look very different. Here's an honest breakdown of how they compare.

What a Bank Does

A bank will offer you their own products. That's it. Their job is to find a loan from their own range that fits your situation, and to get you across the line as a customer.

There's nothing wrong with that, but it does mean you're working with a limited set of options. If another lender offers a better rate, a lower fee structure, or features that suit you better, your bank won't tell you. They can only offer what they have.

Going directly to a bank can work well if your financial situation is straightforward, you already have a strong relationship with that bank, and you're not particularly concerned about comparing options.

What a Mortgage Broker Does

A mortgage broker accesses multiple lenders on your behalf. Instead of being limited to one bank's products, they compare options across their lender panel, which often includes the major banks alongside smaller lenders and non-bank lenders that many borrowers wouldn't find on their own.

Brokers are paid a commission by the lender once a loan settles. You don't pay a fee for the service. And since 2021, Australian brokers are legally required to act in your best interest, not the lender's. That means they can't recommend a product just because it pays a higher commission.

In 2025, around 76.8% of all new residential home loans in Australia were written through mortgage brokers. That number has grown steadily and tells you something about how most Australians now approach the mortgage process.

The Key Differences

Choice of lender: A bank gives you one option. A broker gives you many.

Cost to you: Both should cost you nothing directly. Banks don't charge fees for loan applications. Brokers are paid by lenders, not borrowers.

Who they work for: Bank staff work for the bank. Brokers are legally required to work in your best interest.

Complexity and paperwork: Brokers handle the comparison, the application process, and the lender communication on your behalf. Going direct to a bank means doing that work yourself, including approaching multiple banks if you want to compare.

Access: Some lenders don't work with brokers at all. If you want a loan from one of those lenders specifically, you'd need to go direct.

When a Bank Might Be the Right Call

Going directly to your bank can make sense if your loan is simple and straightforward, you already have a good relationship and rate with that lender, or you specifically want a product from a bank that doesn't work with brokers.

If you're refinancing and your current bank offers to reprice your loan without switching, that can also be worth exploring before taking any other steps.

When a Broker Is the Better Choice

A broker tends to be the better choice when you want to compare multiple lenders without doing the legwork yourself, when your income or financial situation is in any way non-standard, or when you're not sure which loan structure actually suits your goals.

Brokers are also useful if you're a first home buyer who doesn't know where to start, or a refinancer who suspects they're overpaying but isn't sure what alternatives exist.

What to Look for in a Broker

Not all brokers are the same. The things worth looking for: a broker who listens before recommending, who can explain trade-offs clearly, who is transparent about what they're recommending and why, and who tells you honestly if staying with your current lender is the right call.

A good broker checks your situation before giving advice. That's the opposite of the approach that starts with a recommendation and then builds a case for it.

How Swish Approaches It

At Swish, we work as mortgage brokers for Australians at key property milestones: first home buyers, homeowners refinancing, and property investors. We compare across a panel of lenders, handle the process from start to settlement, and give you a straight answer on what we think is right for your situation.

If your current lender is offering you a good deal, we'll tell you. If there's a better option elsewhere, we'll show you what it looks like and what it would cost to move.

Book a free call with Swish to talk through your options, with no obligation and no pressure to switch.