What happens after you hit submit
- Your details go to one Lending Specialist. Not a panel, not a lead auction. One partner, and nobody else.
- They call you, usually within one business day. If you left a note about the best time to reach you, they'll work around it.
- The first call is a conversation. Your situation, your timing, what's realistic. It is not an application and there's no obligation at the end of it.
Your calculator results go across with the request, so the call starts from your actual numbers rather than twenty minutes of background questions.
What a Lending Specialist actually does
The useful part isn't finding the lowest advertised rate. Anyone can search a comparison site. It's knowing which lender's policy fits your specific circumstances.
Two lenders with almost identical advertised rates can differ by more than $100,000 in what they'll lend the same applicant, depending on how each one treats overtime, bonuses, casual income, HECS debt, credit card limits or self-employed income. Finding that out yourself means applying repeatedly and collecting a credit enquiry each time.
Concretely, they:
- Compare lenders across a panel, typically 20 to 40 of them
- Work out which lender's serviceability policy is most generous for your income type
- Structure the loan, including offset, redraw, splits and fixed versus variable
- Handle government schemes like the First Home Guarantee, where lender participation varies
- Assemble and submit the application, then chase it through to settlement
What it costs you
For most residential home loans, nothing. The lender pays the broker an upfront commission at settlement plus a trail commission while the loan stays open.
Two things worth asking about on the first call:
- The Credit Guide. Brokers are required to give you one, and it must disclose how they're paid and by whom. Read it.
- Clawback. If you refinance or sell within roughly two years, the lender claws commission back from the broker. Ask directly whether that would be passed on to you.
The legal bit worth knowing
Since 1 January 2021, mortgage brokers have been subject to a Best Interests Duty under the National Consumer Credit Protection Act. They're legally obliged to act in your best interests and to put your interests ahead of their own where the two conflict. Bank lending staff have no equivalent duty, because they sell one lender's products.
Broker or straight to the bank?
| Lending Specialist | Going direct to a bank |
|---|
| Lenders compared | Typically 20 to 40 | One |
| Legal duty to you | Best Interests Duty | None |
| Cost to you | Usually nothing | Nothing |
| Paperwork | They assemble and submit it | You do it |
| Deals available | Broker-channel pricing and lender specials | Direct-only offers a broker can't access |
| If it goes wrong | AFCA, plus industry association membership | AFCA, via the bank's complaints process |
Going direct genuinely wins in a few cases: you already have a package deal that discounts your rate, the bank is running a direct-only cashback, or you want one of the handful of lenders that don't use the broker channel at all. More on that in Mortgage Broker vs Bank.
Worth having a callback about
- You're a first home buyer and you don't know where to start
- You're self-employed, contracting, casual, or your income includes bonuses or overtime
- Your borrowing capacity is marginal and the gap between lenders could decide whether you buy
- You want to use the First Home Guarantee and need a participating lender
- You're refinancing and want to know whether the switch is actually worth it
- Your fixed rate is expiring and you don't want to roll onto the revert rate by default
- You're buying an investment property and want the structure right from the start
- You've been declined somewhere and want to know why before applying again
What to have roughly in your head
No documents needed for the first call. It helps to know:
- Your gross income, and your partner's if you're buying together
- Your employment type and how long you've been there
- How much you've saved, and where it came from
- Your existing debts: car loans, personal loans, HECS, buy now pay later
- Your credit card limits, not the balances. Lenders assess the limit
- Your rough timing and the price range you're looking at
Talking to a broker won't touch your credit file. A credit enquiry is only recorded when a formal application goes to a lender, and that only happens with your agreement.
Do the numbers first
Walk into the call with your own figures. It changes the conversation completely.
Worth reading before the call
Frequently asked questions
Does a mortgage broker cost anything?
For most residential home loans, nothing. The lender pays the broker an upfront commission at settlement plus a trail commission while the loan stays open. Your broker must give you a Credit Guide disclosing exactly how they are paid, and you should read it.
What happens after I request a callback?
A Lending Specialist calls you, usually within one business day. Your calculator results are shared with them so they can come prepared. The first call is a conversation about your situation and options, not an application, and there is no obligation to proceed.
Do I need documents ready for the first call?
No. The first call is a conversation. It helps to know your rough income, your savings, your existing debts and credit card limits, and your rough timing. Documents come later if you decide to proceed.
Will this affect my credit score?
A conversation with a broker does not touch your credit file. A credit enquiry is only recorded when a formal application is submitted to a lender, and that only happens with your agreement.
Is a broker better than going to my own bank?
Usually, if your situation is not completely straightforward. Brokers compare 20 to 40 lenders and have been subject to a Best Interests Duty since 1 January 2021, which bank staff are not. Going direct can win when your bank offers a package discount or a direct-only deal.
Is SmartKoala a lender or a financial adviser?
No. SmartKoala provides free calculators and refers you to one Lending Specialist partner. We are not a lender, we do not provide credit or financial advice, and we do not arrange loans.
Who we are, and what we aren't
SmartKoala builds free Australian calculators. We're not a lender, not a financial adviser and not a credit provider, and we don't arrange loans. This page passes your details to one Lending Specialist partner and nobody else. We may receive a referral benefit, which doesn't change anything you pay.
Everything on this page is general information only. It doesn't account for your objectives, financial situation or needs, and it isn't a recommendation to take out any credit product. See our Privacy Policy for how your information is handled.
