Do I need a mortgage broker? It is the question behind every myth on this list, so let me answer it with a number first: brokers wrote a record 81% of all new Australian home loans in the March 2026 quarter. That is up from 55% back in 2018. Australia is now one of only three countries in the world where brokers handle more than 80% of mortgage lending. So the real question is not whether you need one, it is why eight in ten borrowers decided they do. Let’s bust the myths one by one.

“Eight in ten new home loans in Australia now go through a broker. The myth that brokers are the niche option died years ago.”

Mansour Soltani, Founder, Soren Financial

Thinking about your own loan? Reach out at startnow@sorenfinancial.com and we will walk you through exactly what a broker does for your situation, no obligation.

Myth 1: Mortgage brokers represent the banks

Incorrect, and since 2021 it is actually the law that we don’t. Under the Best Interests Duty, a mortgage broker is legally required to act in the best interests of the client. Your broker represents you, does the legwork across lenders, and has a duty to recommend the loan that suits your requirements, not the one that suits a bank.

“By law, a broker has to act in your best interests. The person behind the bank counter doesn’t have the same requirements and is working in their employer’s interests generally.”

Mansour Soltani, Founder, Soren Financial

Myth 2: It is cheaper to go direct to the lender

No. Brokers are paid by the lenders, and lenders do not pass that cost on to you — the rate and loan you are offered is the same or better than walking in the front door. If anything, a broker can negotiate a sharper rate or structure your loan to avoid lenders mortgage insurance entirely. We wrote up exactly how a mortgage broker gets paid if you want the full picture.

Myth 3: Loans are simple, I don’t need help

The lending market has never had more moving parts: dozens of lenders, hundreds of products, serviceability buffers, offset structures, fixed vs variable splits and government schemes that change every year. A broker’s job is your pre-approval, your borrowing capacity, lender selection, rate negotiation and managing the whole process through to settlement. Most people buy a handful of properties in a lifetime. We do this every single day. If you are wondering whether you need a mortgage broker for a simple loan, remember the simple-looking loans are where the most money gets left on the table.

Myth 4: A broker’s job ends at settlement

This is the difference between a good broker and a great one. Your loan should be reviewed every year or two against the market, and the trail commission lenders pay brokers is exactly what covers that ongoing service. If your broker has not looked at your rate since settlement, that tells you something.

Myth 5: Brokers only do home loans

Brokers are accredited to advise across multiple lending products: home loans, investment property loans, commercial lending and car loans. Ask what your broker specialises in.

Myth 6: I should run several brokers at once

Speak to another broker if the first one’s strategy doesn’t make sense to you, absolutely. But don’t engage two at the same time — lenders do not like seeing multiple credit applications from the same applicant, and it can genuinely hurt your approval.

Myth 7: My broker needs to be local

A broker can be based anywhere in Australia. You are looking for the best broker, not the nearest one. What matters is their accreditation across lenders, their strategy, and whether they put you in a position to choose from the whole market.

Myth 8: First home buyers always pay LMI without a 20% deposit

Not anymore. The First Home Guarantee lets eligible buyers in with a 5% deposit and no LMI, and since October 2025 there are no income caps and no cap on places. There are also professional packages and lender policies that waive LMI. This is precisely the kind of thing a broker knows and a bank teller has no reason to tell you.

Myth 9: Broker commissions influence where my loan goes

Commissions are broadly the same across lenders — the differences are in how upfront and trail are split, not the total. The commission is not the reason your loan lands where it does, and your broker must disclose what they are paid. Read the quote they give you; it is all there in writing.

Myth 10: All brokers are the same

Brokers specialise. Different lender panels, different strategies, different opinions on which lender suits your file. You should be part of the whole process and comfortable with the fees, rates and strategy on offer. If you are not, see Myth 6.

So, do I need a mortgage broker?

If you have read this far and are still asking “do I need a mortgage broker”, here is the honest version: no, you don’t need one, the same way you don’t need an accountant at tax time. But eight in ten Australian borrowers use one, because the loan market rewards people who compare all of it and punishes people who walk into their own bank and take what they’re given.

Moral of the story: 81% of borrowers have already worked out that the myths above are just that. If you want to see what a broker actually finds for your situation, use our calculators to get a feel for your numbers, check our client reviews on OurTop10, or reach out at startnow@sorenfinancial.com and we will take it from there.