The Question Everyone Asks

Should you use a mortgage broker, or walk into your bank? The honest answer: brokers are the better default for most borrowers, but not all — and knowing which side of the line you sit on takes five minutes.

What a Broker Actually Gives You

Market access. A broker compares products across dozens of lenders; your bank offers you its own shelf. The difference matters most when your scenario is anything other than vanilla — self-employed income, a visa situation, a small deposit, a probation-period job — because policy varies wildly between lenders and the "wrong" bank will simply decline you. A legal duty the bank does not owe you. Since 2021, brokers operate under a Best Interests Duty: a legal obligation to recommend the loan that serves you best. A bank''s lending staff owe you no such duty — they can only sell you the bank''s products, however uncompetitive. Application strategy. Good brokers know each lender''s quirks — how they treat overtime income, rental income shading, expenses. Placing your application where it fits policy protects your credit file from declined applications. Price: usually free. The lender pays the broker''s commission; you typically pay nothing. (Read our guide on how brokers get paid for the incentive fine print.)

When Going Direct Wins

Fairness demands the other side:

  • Existing-customer pricing. Banks sometimes offer retention rates or package deals to existing customers that beat broker-channel pricing. If you have a long, deep relationship with one bank, ask them directly and check the market via a broker — then compare.
  • Some lenders don''t use brokers. A handful of competitive online lenders are direct-only. A broker cannot show you products from lenders who do not pay brokers — a structural blind spot worth knowing.
  • Simple refinance to a known target. If you have already decided the exact product and lender, going direct can be quicker.
  • Speed at your own bank. Your bank already holds your transaction history, which can shortcut verification for straightforward applications.

The Blind Spot Both Channels Share

Neither a broker nor a bank will volunteer that waiting might be your best move — improving your deposit, clearing a car loan, or passing probation can change your rate band more than any lender choice. An adviser who tells you to come back in six months is demonstrating exactly the honesty you want.

A Practical Decision Rule

Use a broker if any of these apply: first purchase, non-standard income, visa or new-PR status, small deposit, previous decline, or you simply have not compared the market in two years. Consider going direct if: you have a strong existing bank relationship to leverage (but verify against the market), or you are targeting a direct-only lender.

Either way, the free move that beats both: get one broker''s written comparison and your own bank''s best offer, and make them compete. An hour of effort routinely moves the rate more than years of loyalty.

The Bottom Line

The broker channel earns its market share — wider access, a legal duty to you, and no direct cost. But the strongest position is an informed borrower using both channels against each other. The comparison is free; the mistake of not making one compounds monthly for thirty years.

This article is general information only — not credit assistance, credit advice or financial advice. Consider your own circumstances and consult a licensed professional before making credit decisions.