Mortgage Brokers in Canberra: How They Work and What to Ask

Whether you are buying your first home in Gungahlin or refinancing an investment property in the inner south, a mortgage broker can save you time and often money. This guide explains what a Canberra broker actually does, how they are paid, and the questions worth asking before you sign anything.

What a mortgage broker does

A broker sits between you and the lenders. Instead of you applying to one bank at a time, the broker compares loans across a panel of banks and non-bank lenders, works out what you can borrow, handles much of the paperwork, and manages the application through to settlement. A good one also tells you when staying put with your current lender is the better move.

Why Canberra is a distinctive market

The capital has one of the highest median household incomes in the country and an unusually stable employment base built around the public service. Lenders generally view that favourably. At the same time, Canberra property prices are high relative to much of Australia, and the ACT runs land under a leasehold system rather than freehold, which occasionally raises questions for buyers new to the city. A local broker who knows how lenders treat ACT leasehold and Canberra valuations is worth seeking out.

Broker or straight to the bank?

Going direct to your own bank is simple, but you only see that bank''s products. A broker widens the field and does the legwork. The trade-off is that brokers do not always cover every lender, so it is fair to ask which lenders are on their panel and whether any are missing.

How brokers get paid

In most cases the lender pays the broker a commission once your loan settles, so the service is usually free to you. Since 2021 brokers have been bound by a best interests duty, a legal obligation to put your interests ahead of their own. If a broker does charge you a fee directly, they must disclose it up front.

First home buyers in the ACT

The ACT has moved away from upfront stamp duty for many buyers, with concessions aimed at owner-occupiers and income-tested schemes that can remove duty entirely for eligible purchasers. The rules change from time to time and depend on your income and the property, so confirm the current settings on the ACT Revenue Office website and ask your broker to factor them into your numbers.

Questions worth asking

• Which lenders are on your panel, and are any major lenders not included?
• How are you paid on this loan, and will I pay you anything directly?
• What is the comparison rate, not just the headline rate?
• What are the fees, including any ongoing or exit costs?
• How will you handle the application and keep me updated through to settlement?

Brokers are regulated by ASIC and must hold a credit licence or operate as an authorised representative of one. It is reasonable to ask for that detail before you proceed.