What is a mortgage adviser and should I use one?
Last updated: 07 July 2025 | Estimated read time: 4 Minutes
Buying a new home is exciting, but with so many lenders to choose from and so many different types of home loans available, finding the right loan to meet your needs can be tricky. So, you may decide it’s easier to get help from a mortgage broker when looking for the right home loan for your situation.
What does a mortgage adviser do?
Mortgage advisers are a go-between who deals with banks or other lenders to arrange a home loan for you.
Mortgage advisers work with you to:
- Understand your needs and budget;
- Work out what you can afford to borrow;
- Find home loan options to suit your situation;
- Explain how each loan option works and what it costs (for example, interest rate, features and fees);
- Arrange what you need to submit an application and help manage the process through to settlement with the lender.
Did you know? Mortgage advisers 'work on commission'. They usually receive a payment from the lender as a percentage of the loan amount and may also receive an ongoing commission.
Sometimes a mortgage adviser will charge you a fee directly in addition to the lender's commission.
If your loan ends (or is moved to another lender) within a certain period, the lender may recoup some or all of the commission they paid to your mortgage adviser. Your mortgage adviser must tell you about this upfront as part of their obligations to explain any fees and commissions that could apply if you decide to work with them.
Choosing a mortgage adviser
Check the adviser's registration
- Check the mortgage adviser is registered on the Financial Service Providers Register.
- Check online reviews to see what other customers have said.
Meeting your mortgage adviser
Once you’ve decided to meet with a mortgage adviser, it’s generally a good idea to make sure that your paperwork is in order before you meet them for the first time – including your financial and employment records.
Consider the ‘must have’ and ‘nice to have’ requirements for your home loan (e.g. do you want to be able to make extra repayments, have branch access). You might also want to think about how long you’d like the loan term.
It’s also a good idea to have a few of your own questions ready to ask the adviser.
Some questions you could ask include:
- Which/how many lenders are on your panel?
- How do you get paid and does this differ between lenders?
- Why did you recommend this loan to me?
- How does each loan option work?
- Will I be charged a fee for the service?
- What features and options come with each loan option?
- What are the fees and charges for each loan option?
- What information will I need to provide for the loan application?
- Will I need to pay lender’s mortgage insurance?
And remember, if you don’t like the options provided, you can request other recommendations, or even find another adviser.
A home loan is a long-term commitment and generally one of the most important financial decisions of your life. So, you need to be comfortable that you’re choosing the right home loan for your own situation. A mortgage adviser could help by talking you through each step, and helping you understand your options, so that you can make a decision.
Answering your top questions about mortgage advisers
Is it cheaper to get a mortgage through an adviser?
Mortgage advisers can have access to a wide range of lenders, so they can be a good way to understand what offers are currently in-market. However, as always, it pays to do your own research.
Mortgage adviser vs bank: which is better?
This will depend on your situation. While an adviser will have access to a wide range of lenders and can help you compare products, they generally won't have access to every product available on the market (some lenders only offer direct-to-consumer loans) so it could be a good idea to do your own research first to understand what offers are available, and what value looks like to you.
Source: 1 This research was conducted by PureProfile on behalf of Pepper Money with a representative sample of 1,010 respondents in Australia aged 18-65+ years old. The research was in field from 11th July 2022 until 15th July 2022.
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Need some help with your home loan?
Whether you’re unsure of the purchase process, wondering what LVR means, or are looking for help along the way, our resources are here to help make sense of all that finance jargon.
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