Mortgage Brokers Melbourne

A mortgage broker can help homebuyers in Melbourne find a home loan to finance their property purchase. If you’re looking to buy or refinance a home loan, we explain what a Melbourne mortgage broker may offer and how to find one that suits your needs.

About mortgage brokers in Melbourne

Alasdair Duncan | Canstar11 June, 2025
Alasdair Duncan, Content Editor, Canstar  || Fact Checked


The bustling city of Melbourne, with its iconic laneways, vibrant culture and love of the arts, is an exciting place to call home. Whether you’re in the market for an inner-city apartment or a quieter house out in the suburbs, getting a good deal on a home loan might well be on your mind. If you’re looking to buy a property in Melbourne, then connecting with a good mortgage broker could be one way to help you find a home loan that suits your needs.

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How does a mortgage broker work?

A mortgage broker is essentially an intermediary, connecting people who wish to borrow finance to purchase a property with banks and lenders who may be able to offer them a good deal on a home loan. A major part of a mortgage broker’s job is to get to know you as a client, and form a picture of your needs and financial position, in order to present you with suitable home loan options from the ‘panel’ of lenders that they work with.

How to find the best mortgage broker in Melbourne?

The Federal Government’s Moneysmart website has advice for those seeking a mortgage broker. They suggest searching through a professional organisation, such as the Finance Brokers Association of Australia Limited (FBAA) and the Mortgage & Finance Association of Australia (MFAA). Both of these bodies have websites with a searchable database of licensed mortgage brokers which could be useful when it comes to finding one in your area.

Another way to find one could be via old-fashioned word-of-mouth. You may have friends and family who’ve bought in the city and went through a mortgage broker. They may be able to recommend a broker who has good local knowledge and was able to find them a favourable deal.

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If you’re wondering about some general things to look out for, here are some questions and enquiries you might make when establishing if a broker is the right person for the job:

  • Are they licensed as a mortgage broker? Mortgage brokers in Australia must have a licence to give credit advice. This means that they are bound by a number of statutory duties. A key one is to act in the best interests of clients when recommending home loan products. If you’re unsure whether a broker is licensed, you can search for them via the FBAA or MFAA websites.
  • How many lenders do they deal with? Mortgage brokers generally work with a ‘panel’ of different banks and lenders who will offer a variety of different home loan options. There is no hard and fast rule about how many lenders a broker should work with, however, you may feel that the greater the variety of lenders a broker works with, the greater the chance that they will be able to find you a suitable deal on a home loan.
  • Do they send most of their business to a particular lender? Even if a mortgage broker has a large panel of lenders, you may find that they send most of their business to a particular one. If this is the case, you may want to ask why, and if they receive particularly favourable perks and commissions from that lender. Even if that lender’s products may be suitable for your needs, you might be concerned that there’s an even better option you’re missing out on.
  • Are they independent or owned by a lender? If you’re considering using a mortgage broker it may be worthwhile to ask if they are independently owned, or if a major bank or lender has an ownership stake in the business. If this is the case, you may be concerned that they will try and direct your business towards this particular institution and that you might miss out on an even better deal you could find elsewhere.

How does a mortgage broker get paid?

Generally speaking, mortgage brokers in Australia do not charge upfront fees to their clients, meaning you’re unlikely to pay anything to use one. Brokers are instead paid by banks and lenders in exchange for referring your business to them. These payments typically come in three forms: upfront commissions, trail commissions and soft-dollar benefits. The first two are forms of direct payment, while the third is based around perks.

  • Upfront commissions: A bank or lender may pay an upfront commission to a broker upon successfully signing you up as a home loan client. There is no set amount for upfront commissions, and they can vary depending on the bank or lender. If a mortgage broker signs you up for an $800,000 home loan and the lender in question pays a 0.5% commission, this means that your broker would make a commission of $4,000 upfront.

  • Trail commissions: A trail commission is a commission that is paid out over a number of years, with a broker typically receiving an amount of money for each year that you stay on a home loan product after a lender signs you up. Trail commissions are controversial, and the 2017 Banking Royal Commission recommended scrapping them altogether. This has not yet happened, though, so you may still encounter brokers who accept them.

  • ‘Soft dollar’ benefits: ‘Soft dollar’ benefits are non-monetary ways that banks and lenders reward brokers for bringing them clients. One example of such a benefit might be a bank that offers favourable commission rates to brokers for bringing them customers, or a higher commission rate if they hit a certain threshold of referrals. Another example might be perks such as trips to conferences with hotel stays or client lunches.

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About the author

Alasdair DuncanAlasdair Duncan is Canstar’s Content Editor, specialising in home loans, property and lifestyle topics. He has written more than 500 articles for Canstar and his work is widely referenced by other publishers and media outlets, including Yahoo FinanceThe New DailyThe Motley Fool and Sky News. He has featured as a guest author for property website homely.com.au. In his more than 15 years working in the media, Alasdair has written for a broad range of publications. Before joining Canstar, he was a News Editor at Pedestrian.TV, part of Australia’s leading youth media group. His work has also appeared on ABC News, Junkee, Rolling Stone, Kotaku, the Sydney Star Observer and The Brag. He has a Bachelor of Laws (Honours) and a Bachelor of Arts with a major in Journalism from the University of Queensland, and has completed a RG146 compliance training course. When he is not writing about finance for Canstar, Alasdair can probably be found at the beach with his two dogs or listening to podcasts about pop music. You can follow Alasdair on LinkedIn.