If you’re getting into the property market, you may have heard the terms “mortgage broker” and “bank loan officer” thrown around. They might seem like the same thing, but they’re actually quite different. Let’s break it down so you can figure out which one’s the best fit for you

What Does a Bank Loan Officer Do?

A bank loan officer works directly for one specific bank or financial institution. Their job? To help you find a home loan from their bank’s range of products—because that’s literally all they can offer.

The good stuff: If you’re already a customer—say you’ve got a savings account or credit card with them—things might move a bit quicker since they already know you.

The not-so-good stuff: You’re only seeing one bank’s options, which might not be the best match for your needs. There could be better rates or features with other lenders. It’s like shopping for a car but only checking out one dealership!

What Does a Mortgage Broker Do?

Think of a mortgage broker as your home loan matchmaker. Unlike a bank loan officer, we’re not tied to any one bank or lender. Instead, we work with a bunch of lenders to find options that fit your needs.

It’s worth mentioning that almost all the lenders we work with pay us roughly the same commission—around 0.6% to 0.7% of the loan amount (net of offset). This means we’re not influenced to recommend anything that’s not in your best interests. Your goals are always our top priority.

At More Than Mortgages, we’ve got access to a wide range of loan products from 50+ lenders, which means more choices for you. We’re your go-to middleman—comparing loans, crunching the numbers, and helping you land the deal that works best for your financial goals and lifestyle.

The best part? We handle the heavy lifting—researching, negotiating, taking care of the paperwork, and liasing with the bank from loan submission through to settlement. We also keep your solicitor (or conveyancer or settlement agent) and real estate agent in the loop. Basically we project manage the entire thing for you. We hold your hand throughout the entire process, and let you know why/what/when/how to do “all the stuff” you need to do to get your home loan settled. Oh, and we also keep in touch after the loan has settled – within 3 days after settlement, 1 month, 6 month and 12 months after settlement we do a full loan review to make sure your interest rate is still competitive, and to make sure the loan product you’ve got still matches what you need.

All of this, free of charge to you.

Key Differences at a Glance

• Choice: A bank loan officer can only offer products from their bank, while a mortgage broker can access a wide range of lenders and loans.
• Best Interests Duty (BID): Mortgage brokers are legally bound by Best Interests Duty (BID)—a set of laws designed to ensure we always act in your best interests. But here’s the catch: BID doesn’t apply to banks or non-bank mortgage lenders. So, if you head straight to a bank for a home loan—maybe the one you’ve been with since you were a kid—keep this in mind. While banks and lenders follow plenty of other regulations, they’re not required to offer you their best available product.
• Convenience: We can save you time by comparing loans from different lenders for you.
• Service: We can guide you through the entire process, from application to settlement, and beyond.

Which Should You Choose?

If you’re happy with your current bank and their products, a bank loan officer could be a solid option. But if you want more choice and someone to handle the legwork of comparing lenders, a mortgage broker will be your best bet.

At More Than Mortgages, we’re all about putting the power back in your hands. We take the time to understand your unique situation and work with multiple lenders to find the home loan that’s just right for you.

Get Expert Help Today

Whether you’re a first-time homebuyer, a seasoned property investor, interested in debt recycling, or you’re looking to refinance, we’re here to help. Call us on 02 6188 4555 or make an appointment for a free consultation today. Let us do the hard work for you!

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