Short answer
Going directly to your bank is usually the simplest route to one lender’s products and process. A mortgage adviser can compare the lenders on their panel, which may include non-bank lenders your bank does not offer, and may manage the application through to settlement. Neither route guarantees the lowest-cost loan.
What does a mortgage adviser do?
An adviser may compare lenders on their panel, identify which documents need explanation, compare structures, submit an application, and coordinate with the lender. Panels differ, so ask which providers are included and excluded.
What happens if you go directly to your bank?
You receive that bank’s products, pricing, criteria, staff, and process in one conversation. Existing history may make the conversation familiar, but you need to contact other lenders yourself if you want a wider comparison.
Does loyalty to your bank guarantee a better rate?
A long relationship can provide continuity, but it does not guarantee the lowest rate, largest cash contribution, or most flexible structure. A retention offer and a new-customer offer should be compared on total cost.
Why might a bank offer more to a new customer?
A lender may spend money to acquire new business through campaign pricing or a cash contribution. An existing customer may still receive a good retention offer, but the commercial objective is different. A broker can uncover that difference and use it as a comparison point.
Can a mortgage adviser get a better interest rate?
An adviser may help secure a competitive rate or incentive, but there is no single broker rate across lenders and no guaranteed result. The value is often the comparison and negotiation process across different lender strategies.
Does a mortgage adviser cost me anything?
Many advisers receive commission from a lender when a loan settles, and some may charge a direct fee. Ask how the adviser is paid, whether fees apply, and whether commission clawbacks could matter if the loan ends or moves early.
What should I check before using an adviser?
Ask which licensed financial advice provider the adviser operates under, request their disclosure information, check the Financial Service Providers Register, and confirm what they are authorised to advise on. Also ask which lenders are included or excluded from their panel.
What is a cash contribution or cashback clawback?
A cash contribution is an upfront payment offered under conditions. If the loan moves or ends within the agreed period, some or all of that payment may need to be repaid. Include it alongside rates, fees, break fees, and legal costs.
Worked example: two couples, two approaches
At a barbecue, Mia and James explain that they used a mortgage adviser to compare their current lender with BGF Bank. Priya and Amit have been with Quiet Pocket Bank for 20 years, trust their business manager, and go directly to the bank when their fixed term comes up for review. Priya and Amit receive a higher illustrative rate than the other couple. They then ask a broker to compare BGF Bank's new-customer offer, including its cash-contribution conditions and switching costs, with a retention request to Quiet Pocket. They may still stay with Quiet Pocket, but now they understand the long-run cost of accepting the first offer. The broker's value is creating a real comparison and negotiating leverage; the couple still makes the final choice.
Why is a mortgage adviser worth the effort?
A broker can create value through lender comparison, negotiation, structure, evidence presentation, and process management. The broker does not need to move the mortgage to prove useful.
When do lenders differ most?
Differences can become more visible when income is non-standard, the deposit is small, the property is unusual, several debts are involved, or the decision concerns a refix or refinance. Different lender criteria do not predict an approval.
What should you compare?
Compare the lender panel, rate, fixed period, structure, flexibility, fees, cash contribution conditions, clawbacks, break fees, legal and switching costs, evidence requirements, timing, service, and adviser remuneration—not a headline number alone.
What MoreGage does and does not do
MoreGage is mortgage education, not regulated financial advice. It does not recommend lenders, assess borrowing capacity, or accept mortgage applications. The example institutions and households are illustrative teaching devices.
Evidence categories to organise
- Lender panel and exclusions
- Rate and fixed period
- Loan structure and flexibility
- Fees and account costs
- Cash contribution conditions and clawbacks
- Break fees, legal, and switching costs
- Adviser remuneration and possible fees
- Information still required
This guide is general information only. MoreGage does not provide regulated financial advice, a lending assessment, approval, or an offer.