Over 80% of Aussie Borrowers Now Choose a Mortgage Broker vs Bank: Here's Why

Australia's mortgage broking industry has just smashed its own record. For the first time, brokers now account for 81% of all new residential home loans written in this country. That is not a small shift: it is a structural change in the way Australians borrow, and the benefits flow directly to you as a borrower.

Osinski Finance is a Rockingham-based mortgage brokerage that has helped clients across Perth navigate exactly this kind of market complexity since 2017. When borrowers are juggling housing affordability pressures, cost-of-living challenges, and shifting interest rate expectations, having an experienced broker in your corner makes a measurable difference. This is why more Australians than ever are choosing a broker over walking straight into a bank.

Quick Answer: Why Are 8 in 10 Australians Choosing a Broker?

Brokers give borrowers something a single bank simply cannot: access to a wide range of lenders and loan products in one conversation. Rather than being limited to one institution's rates and criteria, a broker compares options acrossa record high of 81% of new home loans settled in Q1 2026, meaning you get competitive rates, a streamlined application process, and guidance tailored to your specific situation. Brokers are also required by law toact in your best interests, a legal obligation that banks do not carry in the same way.

A New Record & What It Means for Borrowers

For several years, the 80% market share mark has been the industry's benchmark: the threshold that would confirm brokers had become the default choice for Australian borrowers rather than the alternative. That barrier has now been cleared.

The Mortgage and Finance Association of Australia (MFAA) confirmed that brokers settled $124.88 billion in new home loans in the first quarter of 2026, the highest volume ever recorded for a January-to-March quarter. Market share now sits at 81%,up from 77% just a year ago anda remarkable climb from just 55% back in 2018.

The direction of travel is clear: when borrowers have a choice, they are overwhelmingly choosing to work with a broker. The question worth understanding is why.

Why Use a Mortgage Broker Rather Than Going Straight to a Bank?

The lender landscape has become genuinely complex

There areover 130 home loan lenders operating in Australia. In theory, that is a tremendous choice for borrowers. In practice, it means comparing an almost impossible number of rates, features, fees, and eligibility criteria, and doing it at a time when you are also managing inspections, offers, and the emotional weight of one of the biggest financial decisions of your life.

That is where a broker steps in. Rather than spending weeks comparing a fraction of what is available, you get a professional whose job is to do that comparison on your behalf, present you with a short-list of genuinely suitable options, and then handle the paperwork and lender communication through to settlement.

The period we are in right now has made this guidance especially valuable. Borrowers are navigating housing affordability challenges, persistent cost-of-living pressures, and a changing interest rate environment, a combination that makes independent loan comparison harder and the stakes of getting it wrong higher. 

It costs you nothing, and you are protected by law

One of the most common misconceptions about why use a mortgage broker is the cost. Broker services are free to the borrower in almost every case. Brokers earn a commission from the lender once your loan settles; you do not pay a fee, and that commission does not influence the rate you receive.

More importantly, brokers are legally required toact in your best interests under Australian law. This best interests duty means your broker must recommend a loan that genuinely suits your circumstances, not the one that earns the highest commission or happens to be the easiest to process. It is a layer of consumer protection that goes further than what a bank relationship manager is bound by.

The satisfaction gap tells its own story

Research by Deloitte found that broker customers are meaningfully more satisfied with their home loan experience than those who went direct to a lender. One in three broker customers rated the experience a 9 or 10 out of 10, compared to only one in five direct-to-lender customers. That gap in satisfaction is not accidental: it reflects the difference between being guided through a process versus being managed through a product sale.

How Does a Mortgage Broker Work: Step by Step

Understanding the process makes a real difference to how confident you feel walking into a first conversation. Here is how a mortgage broker works in practice.

Starting with your borrowing power and eligibility

The first thing a broker does is take a clear-eyed look at your financial position: your income, liabilities, deposits, and your goals. From there, they calculate your borrowing power, being the maximum a lender is likely to approve, and flag whether you are eligible for any government support schemes.

For first home buyers in particular, this step is invaluable. There are several first home buyer grants and schemes available in WA that can significantly reduce the deposit required or waive Lenders Mortgage Insurance. Getting across your eligibility early shapes every decision that follows.

Accessing a wide lender panel and comparing products

A broker works with a panel of lenders: in our case, nearly 100 across Australia. That panel includes the major banks, but also a large number of smaller lenders and specialist products that most borrowers would never encounter on their own. The broker's job is tonavigate the complexity of that landscape and identify which lenders are likely to approve your application, at what rate, and on what terms.

This is the stage where the real value of a broker over a bank becomes most visible. When you walk into a bank, you are choosing from that bank's products only. A broker compares across the whole market and selects from it on your behalf, which is precisely why the mortgage broker vs bank comparison so consistently favours the broker for most borrowers.

Managing the application and settlement process

Once you have chosen a loan, your broker prepares and submits the application, liaises with the lender on your behalf, and keeps you updated throughout the approval and settlement process. If there are documentation requests, valuation issues, or any hurdles along the way, your broker handles them; you do not have to navigate the lender's internal processes yourself.

After the settlement, a good broker stays in touch. That means reviewing your rate periodically, keeping you informed of any changes that could affect your loan, and being available when your circumstances shift, whether that means refinancing your home loan to a better rate or restructuring to fund a renovation or an investment property purchase.

The Right Broker for Every Borrower Type

The 81% market share figure reflects the fact that broker value is not limited to one type of borrower. Whether you are buying your first home, upgrading, investing, or looking at refinancing, a broker provides meaningful support at every stage.

For first home buyers, the combination of eligibility guidance, government scheme access, and process support is particularly significant: this is often the most complex transaction a person will manage, and having expert help through it removes a substantial amount of stress and risk.

For refinancers, the broker's ability to compare across lenders quickly means you are not leaving savings on the table by staying with a lender out of loyalty or inertia. The broker does the legwork of finding a genuinely better deal and then manages the switch.

For investors building a property portfolio, access to a wide lender panel matters enormously because investment lending criteria vary significantly across institutions. A broker who understands investment lending can structure a loan in a way that supports your longer-term strategy, not just the transaction in front of you.

Key Takeaways

• Mortgage brokers now account for 81% of all new home loans in Australia, settling $124.88 billion in Q1 2026 alone.
• Brokers are free to use: they earn a commission from the lender on settlement, with no cost to the borrower.
• Australian law requires brokers to act in your best interests, a legal protection that strengthens the case for using one over going direct to a bank.
• Broker customers report significantly higher satisfaction with their home loan experience than direct-to-lender borrowers.
• A broker's value spans the full process: borrowing power assessment, lender comparison, application management, and ongoing loan review.
• Whether you are a first home buyer, investor, upgrader, or refinancer, a broker's access to nearly 100 lenders gives you options a single bank simply cannot match.

Work with Osinski Finance

With access to nearly 100 lenders and a qualified team, Osinski Finance supports clients across Perth with home loans, first-home purchases, and refinancing. Whether you’re buying, refinancing, or expanding your portfolio, we make the process straightforward from start to finish.

Get in touch with our team today for assistance. 

Frequently Asked Questions

Is it worth using a mortgage broker in Australia? 

For most borrowers, yes: the data backs that up. Brokers now handle 81% of all new home loans in Australia, which reflects how widely their value is recognised. A broker gives you access to a wide lender panel, handles the paperwork and application process on your behalf, and is legally required to act in your best interests. For borrowers who are time-poor, first-time buyers unfamiliar with the process, or anyone whose financial situation is complex, the case for using a broker is particularly strong.

What is the downside of using a mortgage broker? 

The main consideration is that brokers work with a panel of lenders rather than the entire market, though for most brokers, that panel is large enough that this is rarely a limitation. It is worth asking your broker which lenders they are accredited with and how they selected the loan they are recommending. Brokers are required by law to act in your best interests, which provides a meaningful layer of accountability, but as with any professional, it pays to ask questions and understand the recommendation you are being given.

How do mortgage brokers get paid in Australia? 

In most cases, brokers earn an upfront commission from the lender once your loan settles, and an ongoing trail commission for as long as the loan remains active. These commissions are paid by the lender, not by you as the borrower, meaning broker services are free to use in almost all home loan situations. The commission structure is disclosed to you as part of the lending process, and the best interests duty requires that a broker's recommendation not be influenced by commission rates.

What percentage of Australians use a mortgage broker? 

As of Q1 2026, brokers account for 81% of all new residential home loans written in Australia, the highest market share ever recorded. That figure has climbed steadily from 55% in 2018, reflecting a broad shift in how Australians prefer to organise their borrowing. It means that for every 10 people currently taking out a home loan, more than 8 of them are doing so through a broker.

Is it cheaper to use a mortgage broker or go directly to a bank? 

Using a broker is free to the borrower, so there is no upfront cost comparison to make. Where the financial difference shows up is in the loan itself. Brokers compare rates and features across a large panel of lenders. They are in a position to negotiate on your behalf, which often results in a more competitive interest rate than you would secure by approaching a single bank directly. Even a small rate difference on a large loan compounds significantly over the life of the loan.

Why use a mortgage broker over a bank? 

A bank can only offer you its own products. A broker can compare options from dozens of lenders and identify which one is the best fit for your specific financial position, goals, and timeline. Beyond the product comparison, a broker manages the application from start to settlement, handles communication with the lender, and is legally bound to recommend a loan that suits your circumstances. For most borrowers, that combination of choice, expertise, and accountability is hard to replicate by going direct.

What does a mortgage broker do, exactly? 

A broker starts by understanding your financial position and goals, then calculates your borrowing power and checks your eligibility for any applicable government schemes or grants. From there, they search across their lender panel to identify suitable loan options, present you with a short-list, and once you have chosen, prepare and submit your application. They manage the relationship with the lender through to settlement and stay in contact afterwards for loan reviews and future needs. It is a full-service process, not just a comparison tool.

Who benefits most from using a broker? 

First home buyers benefit enormously from broker guidance, given the complexity of the process and the availability of grants and schemes that are easy to miss without expert help. Refinancers benefit from a broker's ability to quickly benchmark their current loan against the market. Investors benefit from access to a wide lender panel and a broker's understanding of investment lending structures. Self-employed borrowers benefit from a broker's knowledge of which lenders are more flexible on income documentation. In short, most borrowers benefit, but complexity and time pressure amplify the value significantly.

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