Choosing between a bank and a mortgage broker can feel overwhelming. As a professional mortgage broker specialising in home loans for Maroubra and the Eastern Suburbs, I help buyers and refinancers cut through the noise. Below is a clear comparison, practical guidance on which route suits different situations, and a simple checklist to help you decide.
Quick comparison of key attributes
| Attribute | Bank | Mortgage Broker |
| Product range | Limited to the bank’s own products | Access to many lenders and products |
| Interest rates | May offer loyalty or promotional rates | Can shop the market for competitive rates |
| Fees & charges | Transparent for that bank; limited negotiation | Broker fees may apply; can negotiate lender fees |
| Advice & suitability | Product-focused; may push bank products | Holistic advice tailored to your situation |
| Application convenience | Single-relationship simplicity | One application, multiple lender options |
| Approval speed | Fast for existing customers | Can be fast; depends on lender chosen |
| Negotiation power | Limited to bank’s discretion | Can leverage multiple lenders for better terms |
| Best for | Simple, straightforward borrowers | Complex cases, self-employed, multiple incomes |
Quick verdict
If your situation is straightforward, you already have a strong relationship with a bank, and you value simplicity, going directly to the bank can work well. If you want the best chance of a competitive rate, need tailored structuring, or have a complex income or employment situation, a mortgage broker is usually the smarter choice.
How banks typically work
- Single-source products: Banks sell their own home loans and may offer incentives to existing customers.
- Simplicity: If you already bank with them, the application and verification steps can be quicker.
- Limited comparison: You’re restricted to the bank’s product set and pricing, which can be fine for straightforward borrowers but may miss better deals elsewhere.
How mortgage brokers add value
- Market access: Brokers compare multiple lenders—major banks, regional banks, and non-bank lenders — to find a product that fits your goals.
- Tailored structuring: Brokers can recommend loan splits, offset accounts, redraw facilities, and repayment strategies aligned with your plans.
- Complex cases: Self-employed applicants, contractors, investors, or those with credit quirks often get better outcomes through a broker.
- Time and negotiation: A good broker handles paperwork, negotiates fees and rates, and manages lender communications to speed approvals.
Which option suits you — practical scenarios
- Go to a bank if you have a simple PAYG salary, strong credit, prefer one relationship for banking and lending, and value speed over shopping around.
- Choose a broker if you are self-employed, have multiple income streams, need loan structuring advice, are buying an investment property, or want the best market comparison and negotiation.
- Refinancing: Brokers often find better refinance options because they can compare exit costs and new loan features across lenders.
- First-home buyers: Brokers can help identify grants, first-home buyer products, and structure loans to maximise benefits.
How to choose the right broker or bank
- Check credentials: Look for an Australian Credit Licence or an authorised broker, and ask for references.
- Ask about fees: Clarify broker commissions, lender fees, and any upfront costs before proceeding.
- Compare outcomes: request a written comparison of likely rates, fees, and repayment scenarios.
- Transparency: Choose a broker who explains why a lender is recommended and shows alternatives.
- Local knowledge: For Maroubra buyers, local market insight matters — choose someone familiar with Eastern Suburbs property dynamics.
Practical checklist before you apply
- Documents to prepare: ID, payslips (last 3 months), bank statements (3–6 months), tax returns if self-employed, and details of existing debts.
- Know your goals: owner-occupier vs investor, fixed vs variable preference, planned loan term, and any short-term cash needs.
- Get pre-approval: useful for house hunting and negotiating with sellers.
- Compare total cost: Look beyond headline rates to fees, offset options, redraw, and break costs.
Local note — Maroubra and the Eastern Suburbs
Property values and lending appetite vary across suburbs. In Maroubra, proximity to the coast, investor interest, and local rental yields can influence lender appetite and loan structuring. A broker with local experience can tailor recommendations to these nuances and help you position your application for success.
Final recommendation
If you want a market-wide comparison, tailored structuring, and help navigating complex income or investment scenarios, work with a reputable mortgage broker. If you prioritise speed and simplicity and already have a strong banking relationship, starting with your bank is reasonable. Either way, get a pre-approval and compare the total cost and features, not just the headline rate.
If you’d like, I can draft a short message you can send to lenders or a checklist you can use when speaking to a broker or bank — or, if you’re in Maroubra, I can outline the specific documents lenders typically request here. Which would be most useful.
