Mortgage Broker vs Going Direct When Refinancing — Which Is Better?

When it's time to refinance, you have two main paths: use a mortgage broker to compare multiple lenders, or go directly to a bank you're considering. Both can get you a good outcome — but they're suited to different situations.

Here's an honest breakdown so you can decide which approach makes sense for your refinance.

Going Direct to a Bank

Pros:

• Simple if you already know which bank you want
• Can sometimes negotiate on rate if you're an existing customer
• May be faster if the bank already has your financial data

Cons:

• You only see one lender's products
• No independent comparison — you're taking their word that their offer is competitive
• Bank staff are not obligated to tell you a competitor has a better rate
• Repeating the process at multiple banks is time-consuming and creates multiple credit enquiries

Using a Mortgage Broker

Pros:

• Access to 20–40+ lenders from one application
• Brokers have a legal best-interest duty — they must recommend what's right for you, not just available
• Handles paperwork and lender communication on your behalf
• Paid by the lender (commission), not the borrower — usually no cost to you
• Can identify lenders most likely to approve your specific situation

Cons:

• Not all brokers have the same panel of lenders
• Quality varies — an inexperienced broker may miss better options
• Brokers earn more from some lenders than others (though the best-interest duty limits this conflict)

What Does "Best Interest Duty" Mean?

Since 2021, Australian mortgage brokers have been legally required to act in the client's best interest — not just recommend a "not unsuitable" loan. This includes considering rate, fees, features, and the likelihood of approval before recommending a product.

When Going Direct Makes Sense

Going direct works well when:

• You have a specific bank in mind and strong loyalty pricing from them already
• Your situation is very simple (stable income, clean credit, 60% LVR)
• You're renewing a fixed rate with your existing lender (often the easiest path)
• You've already received a broker comparison and want to go back to your preferred bank

When Using a Broker Makes More Sense

A broker adds the most value when:

• You're not sure which lender will offer the best rate for your LVR and income
• Your situation is complex (self-employed, multiple properties, non-standard income)
• You want the process handled — paperwork, chasing valuations, settlement coordination
• You've been with your current lender for years and suspect you're overpaying
• You want to access equity or consolidate debt as part of the refinance

Can You Do Both?

Yes — and some borrowers do. They get a broker comparison first to understand the market, then approach their existing bank to see if they can match it. The broker comparison gives you leverage.

Bottom Line

For most borrowers, using a broker is the more efficient and comprehensive approach — especially because it costs nothing. Going direct makes sense when you have a specific, well-researched reason to use a particular lender.