With so many lenders to choose from and hundreds of different products available in Australia’s crowded marketplace, finding the right home loan can often be a confusing and stressful process.   

So how, then, do brokers make their money?

Who pays Mortgage Brokers?  

Let's imagine you are looking to buy a property. A good Mortgage Broker can:

• Work with you to understand your needs and goals

• Calculate what you can afford to purchase

• Find options to suit your circumstances

• Structure the deal to increase your chances of approval

• Negotiate rates with the lender so you get the best deal possible

• Apply for a loan and manage the process right through to settlement

• Regularly review your home loan to make sure it still suits your needs

But while Mortgage Brokers work on your behalf, they generally don’t charge borrowers to take out home loans. Rather, they get paid commissions by lenders whenever they arrange a loan.

Obviously, it’s great news that this service won’t cost you a cent – but doesn’t that mean there’s the potential for a conflict of interest? After all, if Lender X pays a higher commission than Lender Y, surely that’s the lender the broker will recommend – irrespective of whether or not it has the best product for the client’s needs?

Thankfully, no, because there are regulations in place to prevent that practice.  

Mortgage Brokers must put your interests first

Although Mortgage Brokers get paid by lenders, they are obliged by law to put your interests above their own. This is known as the best interests duty (BID) and means you can always be assured your broker is acting in your best interests when recommending a home loan.

What’s more, BID doesn’t apply to lenders. So if you approach your bank directly, they aren’t legally required to offer you a product that best matches your needs.

Looking for the best mortgage broker in Sydney? Eventus Financial is a multi-award-winning mortgage broker with over 300 five-star Google reviews. Schedule a no-obligation consultation with Alex to find out how we can help you with your home loan.