Home Loan Specialist Calculators Get Referred
Specialist vs Bank · Direct Comparison

Broker Or Bank Direct? The Numbers Answer.

A home loan specialist compares 30–60 lenders. A bank offers one. Both are free. Here’s why 70% of Australians now choose a specialist.

70%
Of AU home loans originated via a specialist (MFAA, 2024)
0.2–0.5%
Typical rate gap: specialist vs bank direct
$0
Cost to you either way

Same cost. Very different outcome.

Specialists and banks both cost you nothing at the door. But what you get is very different — one lender’s pricing vs the entire market. Here’s what ASIC, MFAA, and CoreLogic data show.

A specialist compares the whole market
30–60 lenders including majors, second-tier, and specialist non-banks. One bank offers their products only.
Specialists negotiate pricing banks don’t show you
Volume-discount pricing routinely 0.1–0.5% below the sticker rate. Banks don’t offer this to walk-ins.
Best Interests Duty is law since 2021
Under the NCCP Act, specialists must legally recommend the loan in YOUR best interest — not their commission. Bank staff have no equivalent duty.

Same cost. Very different outcome. — tap to explore

Specialists and banks both cost you nothing at the door. But what you get is very different — one lender’s pricing vs the entire market. Here’s what ASIC, MFAA, and CoreLogic data show.

ASIC Report 516 — what the regulator found

ASIC’s Report 516 (2017, still the landmark study) found that home loans arranged through specialists had consistently lower interest rates than direct-to-bank loans, even after controlling for borrower profile.

The report also found specialists placed clients with a wider range of lenders (including second-tier options borrowers rarely consider direct), and that borrower satisfaction was measurably higher.

MFAA data since 2017 shows the specialist share of home loan originations has climbed steadily from ~55% to ~70% in 2024-25.

Why a bank doesn’t offer you their sharpest rate

Banks have a standard variable rate (SVR) and a range of discounted pricing tiers — ‘pro pack’ rates, package discounts, retention rates. When you walk in cold, you get the SVR or a small discount.

When a specialist submits your application, the lender knows you’ve compared the market and they compete harder — they offer their sharpest tier to win your business.

It’s the same lender, the same loan, a better rate — because competition is priced in.

When going direct to a bank can make sense

1. You already have a strong relationship — decades of banking history, multiple products. The lender may offer preferential rates to retain you.

2. Specialist lender not on broker panel — some boutique private banks or credit unions aren’t on specialist panels.

3. Simple, low-LVR loan, strong income — if your situation is vanilla and your bank is known to be competitive, the margin of improvement from a specialist may be minimal.

Even in these cases, getting a specialist’s comparison quote first costs you nothing and is good leverage.

How specialists are paid (full disclosure)

Specialists are paid by the lender on settlement. Typical commission: 0.5–0.7% of the loan amount upfront, plus a 0.15–0.20% trail annually while the loan is open.

Under the Best Interests Duty (effective Jan 2021), specialists must legally recommend the loan that is in YOUR best interest, not the one paying the highest commission. ASIC enforces this.

You pay nothing. The commission is factored into the lender’s cost of origination and doesn’t affect your rate.

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Quick Answers On broker vs bank

Can a specialist really get me a better rate than my bank?

Usually yes. Specialists access pro-pack and volume-discount rates 0.1–0.5% below the advertised rate. On a $600K loan, 0.3% lower saves $118/month — $42K over 30 years. Same lender, same loan, free comparison done by the specialist.

Does a specialist charge me?

No. Home loan specialists in Australia are paid by the lender on settlement — typically 0.5–0.7% upfront commission plus a small trail. You pay the same rate whether direct or via specialist.

Is my bank ‘loyalty’ worth anything?

Rarely. ACCC studies consistently show the ‘loyalty tax’ — existing customers pay higher rates than new customers at the same bank. Your bank has no incentive to offer you their best rate unless you force competition. A specialist does that for you.

See the full home loan FAQ (8 questions) →