Mortgage broker vs bank — an honest comparison.

By Jason Given · April 2026 · 5 min read

What each option actually gives you

When you go directly to a bank, you are dealing with a lender's own sales team whose job is to place you in one of their products. They can only offer what their institution provides — one set of rates, one set of policies, one set of features. They are not required to tell you that another bank might suit you better.

When you use a mortgage broker, you access multiple lenders simultaneously. The broker's legal obligation — under the Best Interests Duty — is to recommend what is in your interest, not the lender's. A broker with 60+ lenders on their panel brings the market to you rather than presenting one corner of it.

When going directly to a bank makes sense

There are genuine situations where going directly to a bank is the right choice. If you have an existing relationship that includes meaningful pricing — such as a private banking relationship with preferential rates — a broker may not be able to match it. If you are refinancing a very small loan and the broker commission does not cover the work involved, some brokers may not prioritise your application.

At Lendology, we tell clients honestly when their existing bank relationship or retention offer is the best available option. Our recommendation is always based on what produces the best outcome for you — not on generating a commission.

The case for using a broker in complex situations

The value of a broker over a bank is most significant in complex situations. Self-employed income, multiple properties, non-standard security, recent credit issues, separation finance, low-doc lending — these all require a broker who knows which lenders have the most accommodating policies for your specific circumstances. A bank can only tell you whether their own policies allow them to approve your application.

The trust question

Some borrowers worry that a broker recommending a lender has a financial conflict of interest. The Best Interests Duty — introduced in 2021 — addresses this by legally requiring brokers to prioritise your interest over commission. ASIC research has found that broker-originated loans have rates broadly equivalent to direct loans, confirming that the commission structure does not disadvantage borrowers.