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Should I use a Mortgage Broker to get my home loan?

Bank, credit union or mortgage broker: which is right for you?

A Mortgage Broker has access to multiple lenders and can give you advice on the best products for your situation. If you're still unsure here's an overview of approaches you can take when thinking about applying for finance.

You have a few options when it comes how you choose a lender to borrow from.

Let's look at three here:

  • Mortgage brokers
  • Credit unions
  • Banks

credit unions

Unlike banks, credit unions are not-for-profit organisations. They are run specifically to benefit their members. You are generally required to become a member when you take out a loan, sometimes for a small fee, which can be as little as $10.00. Because they are run to benefit members, they can usually offer more competitive interest rates, lower fees and more intimate customer service. Like banks, they are also governed by the APRA code of practice.

Credit union lenders generally offer the following benefits:

  • More competitive interest rates
  • More flexible lending criteria
  • Lower set-up costs and ongoing fees and charges
  • A strong focus on customer service


You may have heard what we commonly refer to as the ‘Big Four’ banks and it’s likely that you already have a transaction account with one of them. But that doesn’t mean that you have to take your home loan out with them; you can explore your options. While the Big Four banks offer a wide range of products, such as loans, credit cards and transaction accounts, their interest rates can be less competitive due to their popularity. Banks operate for profit.

Banks offer the following advantages:

  • They are well-established and hold the largest share of the home loan market.
  • You may already be a customer of one of these institutions and this offers easier access.
  • The Australian Prudential Regulatory Association (APRA) holds these institutions accountable for all financial promises they make.

mortgage brokers


A mortgage broker seeks, finds and compares home loan products from a vast pool of banks and lending institutions.  They have access to the best deals currently being offered by the banks and will know where to look to find a solution that will be best suited to your needs. They are the go-between agent between the borrower and the lender.  To avoid missing out on the huge benefits of using a construction loan it's essential that you choose a mortgage broker who specialises in construction loans and who understands the home building process.

Mortgage brokers offer the following advantages:

  • They save you time by doing all the legwork for you.
  • They have access to rates and terms you might not have known about.
  • They negotiate the rate and terms on your behalf.
  • You can choose a broker who specialises in construction loans (building loans)

Mortgage brokers can save you time by doing the legwork for you plus they’ll have access to rates and terms you might not have known about.

Mortgage brokers negotiate the rate and terms on your behalf and using a mortgage broker gives you the opportunity to use someone who specialises in construction loans.

For Government Advice on using a Mortgage Broker visit https://moneysmart.gov.au/home-loans/using-a-mortgage-broker

in summary


Work with a specialist construction loan (building loan) broker who will find the best borrowing scenario for you based on your personal circumstances, saving you time, stress and ultimately, money.


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Home loans are like pigeons, you want to fly the one that gets home first.

- Natalie Stevens


This information is of the nature of general comment only, and does not represent professional advice nor should it be substituted for professional advice. Whilst attempts have been made to ensure the accuracy of the information, we don't guarantee it's accuracy.  Any information we provide is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. You should always obtain professional advice before making any decision to purchase property of any kind.  We recommend you seek professional financial advice prior to entering into a contract of any kind.   Build In Oz disclaims all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based on the information in this course.  Please refer to our privacy and disclosure statement for further information.

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