The short answer

Most Australians now get their home loan through a broker. In the June 2026 quarter, brokers wrote a record 81.6% of all new home loans in the country. Younger borrowers led that shift, and they did it because they see a broker as the smarter way in rather than the place you go after the bank says no.

When a broker was the last resort

If you bought your first home in Lismore in the 80s or 90s, there’s a good chance you did it at the bank branch on Molesworth Street. You knew the manager, or your parents did. You had your savings account there and your car loan there, so your home loan went there too.

Back then a mortgage broker was who you called when that didn’t work out. Maybe your income was a bit unusual, or the bank wanted a bigger deposit than you had. Going to a broker felt like admitting you’d been knocked back.

That idea has stuck around longer than the bank branches have.

What changed

The numbers have moved a long way in a short time. In June 2018, brokers wrote 53.9% of new home loans in Australia. By June 2026 that had climbed to 81.6%, according to Cotality data commissioned by the Mortgage & Finance Association of Australia.

Younger borrowers are a big part of why. A 2025 study by RFi Global found 61% of under-35s said a broker would be their preferred way to apply for a home loan, compared with 39% of over-65s. Younger borrowers were also five times more likely to turn to a broker to keep up with rate changes.

It’s easy to put that down to inexperience. The more interesting part is that most of those borrowers already had a mortgage. They’d been through it once with a broker, and they’d choose to do it that way again.

What we see in the Northern Rivers

We see the same split here. Our clients under 40 usually come to us first, before they’ve spoken to a single lender. They want to know what their options look like across the market before they commit to any of them.

Our older clients are more likely to find us after something has gone wrong. A fixed rate has rolled onto something much higher, a renovation quote came in bigger than expected, or their bank’s answer to a simple question has taken six weeks.

There’s nothing silly about that. Going to the bank was the sensible choice when they first bought, and the market has moved on since.

Why the smarter route runs through a broker

A bank can only offer you its own loans. A broker can compare loans across a wide panel of lenders, including smaller lenders and regional banks that rarely advertise.

That matters more in a place like Lismore than it does in Sydney. Lenders don’t all see Northern Rivers properties the same way. Some are comfortable with homes that have been raised or repaired since 2022, and some aren’t. Some have sensible policies for self-employed borrowers, farmers and seasonal incomes, and others make it very hard work. Knowing which lender suits your situation before you apply saves you a rejection on your credit file.

There’s also a legal difference. Since 2021, mortgage brokers have had to act in your best interests when they recommend a loan. That duty applies to brokers. It doesn’t apply to a bank’s own lenders in the same way. If a broker recommends a loan, they need to be able to show you why it suits you.

And in most cases the service costs you nothing, because the lender pays the broker when your loan settles.

What staying loyal can cost

Loyalty feels like the safe option, and it’s worth knowing what it costs. Lenders often save their sharpest rates for new customers. A loan that hasn’t been reviewed in a few years can drift well above what the same lender is offering people walking in today.

On a $1m loan, half a per cent is roughly $300 a month. That’s money leaving your account for no reason other than nobody asked.

The question worth asking

When did you last compare your home loan with what’s available across the market, not just at your own bank? If you can’t remember, the younger borrowers in town have already worked out what to do next.

We can take you through it in about 20 minutes, with no obligation.

Frequently asked questions

Does it cost more to use a mortgage broker? In most cases, no. Brokers are usually paid by the lender once your loan settles. If a broker does charge a fee, they have to tell you upfront.

Will a broker get me a better rate than my own bank? Often, yes. A broker compares loans across many lenders and can negotiate on your behalf, including with your existing lender.

Do brokers only work with first home buyers? No. We help with refinancing, investment loans, construction loans, debt consolidation and home improvements as well.

What is the best interests duty? It’s a legal obligation, in place since 1 January 2021, that requires mortgage brokers to act in their clients’ best interests and put the client first when there’s a conflict.

Can I use a broker if I’m self-employed or have a farm? Yes. Some lenders are much more comfortable with self-employed and rural incomes than others, and a broker can match you with the right one.

This article contains general information only and doesn’t take into account your personal financial situation, needs or objectives. Speak with a Smik Home Loans broker for advice tailored to your circumstances.

Sources: MFAA – Mortgage broker market share reaches record 81.6% · RFi Global – The broker boom