It is one of the most common questions in Australian home buying: should you walk into your bank or call a mortgage broker? The honest answer is that for most borrowers in 2026, a broker will access better rates, save you time, and cost you nothing directly. But context matters, and this article gives you the full picture.
The Core Difference
When you go directly to a bank, you are limited to that institution’s product range. Their loan officer can only offer what their employer sells, and their incentive is to meet the bank’s targets, not necessarily to find your best outcome.
A mortgage broker operates differently. They are accredited with dozens of lenders and are legally required to act in your best interest. Rather than one product shelf, you get access to a wide market, competitive pressure between lenders, and advice tailored to your specific financial picture.
Central Lending Solutions is paid by the lender when your loan settles, which means you pay nothing directly for the service regardless of how complex your situation is. That fee structure has been regulated since 2021 to ensure it does not create conflicts with your interests.
At a Glance
- 70%+ of Australian home loans now written by mortgage brokers
- 30+ lenders typically on a broker’s panel vs 1 at a bank
- $0 direct cost to borrowers using a broker in most cases
Side-by-Side Comparison
| Factor | Mortgage Broker | Direct Bank |
| Lender choice | 20 to 40+ lenders on panel | 1 institution only |
| Cost to you | Typically $0 (paid by lender) | No direct fee, but limited competition |
| Rate access | Competitive across market; volume discounts | Advertised rates, limited negotiation |
| Legal obligation | Best interests duty to borrower | Responsible lending only |
| Complex situations | Self-employed, low doc, bad credit, guarantor | Standard employment only, limited flexibility |
| Time required | Broker handles paperwork and submissions | You research, apply, and follow up yourself |
| Refinancing support | Ongoing relationship, alerts to better deals | Bank has no incentive to tell you to switch |
When a Broker Has the Clear Advantage
For most borrowers, a broker wins outright. The advantage is most pronounced in these situations:
First Home Buyers
Navigating your first purchase is complex. Government schemes, deposit requirements, guarantor structures, stamp duty concessions and LMI all interact. A Perth mortgage broker coordinates all of this and ensures nothing is missed. A bank will only assess whether you qualify for their specific product.
Self-Employed Borrowers
Banks apply strict income verification that often excludes business owners and contractors. Low doc loans and alternative income verification policies vary widely between lenders. A broker knows which institutions are most flexible and will position your application correctly from the outset.
Refinancing
Your bank has no commercial reason to tell you that a competitor is offering 0.5% less than your current rate. A broker does. If you have not reviewed your mortgage in the past two years, you are almost certainly paying more than you should. The refinancing process is simpler than most people expect when managed by a broker.
Guarantor and Low Deposit Loans
Not every lender offers low deposit home loans or guarantor arrangements, and those that do have very different eligibility criteria. A broker’s market knowledge prevents wasted applications and protects your credit file.
When Going Direct to a Bank May Make Sense
There are some limited scenarios where going direct could work in your favour. If you have a long-standing relationship with a major bank and a large existing deposit or investment portfolio, you may be able to negotiate a relationship discount that a broker cannot access. Some banks also run exclusive promotions that are not available through the broker channel.
However, these situations are the exception rather than the rule, and even in these cases it is worth speaking to a broker first to ensure you are comparing accurately. A good broker will tell you honestly if your bank is offering the best deal.
The bottom line: Over 70% of Australian mortgages are now written by brokers for a reason. The combination of broader market access, no direct cost, and a legal obligation to act in your interests tips the scales clearly in favour of using a broker for most borrowers in 2026.
What to Look for in a Perth Mortgage Broker
Not all brokers are equal. When choosing who to work with, look for MFAA or FBAA membership, which signals professional accreditation and ongoing education requirements. Ask about the size of their lender panel, their experience with your type of loan, and whether they have a track record in the Perth market specifically.
Central Lending Solutions has been operating in Perth for over 20 years, is a full member of the MFAA, and has won multiple industry awards including placement on Australia’s Top 100 Mortgage Brokers list three years in a row. The team specialises in first home buyers, construction finance, refinancing, and investment loans across the Perth metro.
Frequently Asked Questions
Does using a mortgage broker actually cost me anything?
In the vast majority of cases, no. Mortgage brokers in Australia are paid a commission by the lender when your loan settles. Under regulations introduced following the Royal Commission, brokers are legally required to disclose this commission and must act in your best interest, not the lender’s. Central Lending Solutions does not charge borrower fees for standard home loan applications. Your broker will always disclose any applicable fees upfront before you proceed.
Can a broker get me a lower interest rate than my own bank?
Often, yes. Brokers write significant volume across many lenders and can access rates that are not available to direct customers. Lenders also compete for broker-referred business, which creates downward pressure on pricing. That said, the right rate depends on your loan size, deposit, employment type, and credit history. Our team at Central Lending Solutions will compare your current rate against the market and tell you clearly whether switching makes financial sense.
How many lenders does a typical mortgage broker have access to?
A well-established Perth broker will typically have 25 to 40 lenders on their panel, covering the major banks, regional banks, credit unions, and specialist non-bank lenders. This breadth matters because different lenders suit different borrower profiles. For example, a self-employed borrower or someone seeking a low deposit loan will find that some lenders are significantly more competitive than others for their specific situation.
Is a mortgage broker regulated in Australia?
Yes. Mortgage brokers in Australia must hold an Australian Credit Licence or operate under a licence holder, must comply with the National Consumer Credit Protection Act, and since 2021 have been subject to a Best Interests Duty that legally requires them to prioritise your interests above those of lenders. They must also be members of an industry association such as the MFAA or FBAA, which carries its own code of conduct and dispute resolution requirements.
Should I use a broker for refinancing, or go back to my existing bank?
Using a broker for refinancing almost always makes sense. Your existing bank has no incentive to offer you their most competitive rate when you are already a customer. A broker will survey the full market, identify which lenders are currently pricing most aggressively, and calculate whether the switch is worthwhile after break costs and fees are factored in. Many of our refinancing clients in Perth save meaningfully each month after the switch, and the process is straightforward when handled by an experienced broker.
See What Rate You Could Actually Get
Our team will compare your situation across 30+ lenders at no cost to you. No obligation, just clear advice from Perth’s most experienced brokers.
Prefer to call? +61 431 102 192 · Osborne Park, Perth WA