First Home Buyers
What Working With a Mortgage Broker Actually Looks Like
Bank first? Pre-approval first? Broker first? Nobody explains the order things happen in — so here it is, from first hello to settlement day.
The Question Everyone Asks
"Do we find a loan first, then come to you?"
A client emailed me recently with a question I've heard, in one form or another, dozens of times:
"My partner and I are a bit confused about the process. Do we search around for the best bank loan first, and then get pre-approved, before we come and speak to you?"
It's a completely reasonable question — and if it's your first time buying, the honest answer is that nobody ever explains what working with a broker actually involves, or what order things happen in.
The short version: you don't need to do anything before speaking to a broker. No bank shopping, no pre-approval, no spreadsheet of rates. In fact, doing those things first can actively work against you. The broker conversation isn't the step after you've found a loan — it's the step that finds the loan.
Key Insight
Comparing lenders and arranging pre-approval is the broker's job. That's the service. Coming to a broker with a pre-approval already in hand is a bit like marinating a steak before taking it to a restaurant.
Banks advertise directly to you, so it's natural to assume the process starts with picking one. And "pre-approval" sounds like a ticket you need to hold before anyone serious will talk to you — like turning up to an interview with your CV. Neither is true. Here's how it actually runs.
The Process
From first hello to keys in hand — step by step
Four steps. The first one requires nothing from you but a conversation.
Step 1 · The starting point
We talk — before you've done anything
The first meeting is a conversation, not an application. We discuss what you're trying to achieve — first home, upgrade, investment — and I'll give you an initial view of your borrowing capacity. You'll walk away knowing roughly what's realistic, which makes everything that follows less stressful.
This costs you nothing and commits you to nothing. The earlier this happens, the better — even if you're six or twelve months from buying, knowing your position early gives you time to fix anything that needs fixing.
Step 2 · The groundwork
You share your details, I search the market
Next, you share the supporting details — payslips, financial information, ID — through a secure fact find portal (no emailing bank statements around, please). With the full picture, I can match your situation against policies and products across 40+ lenders.
This is the "shopping around" you were planning to do yourself — except it covers far more of the market, and it accounts for the thing rate-comparison websites can't see: lender policy. The sharpest advertised rate is irrelevant if that lender's credit policy doesn't suit how you're paid, what you've saved, or what you're buying. Matching policy to person is most of the job.
Step 3 · Finance ready
We agree an option and I arrange pre-approval
We meet again, go through the shortlist, and once you're comfortable with a direction, I submit a pre-approval application on your behalf. This is the point where pre-approval enters the picture — as an output of the process, not a prerequisite for it.
Pre-approval makes you "finance ready": you know your budget with confidence, agents take you seriously, and you can bid at auction or negotiate on a private sale knowing where your ceiling is. For the finer detail, see the full guide to the pre-approval process.
Step 4 · The home straight
You buy, I get you to settlement
Once you've found a property and had an offer accepted, I take the loan through to unconditional (formal) approval — the version that actually funds your purchase — and coordinate with your conveyancer through to settlement day.
Before You DIY
A word of caution about shopping around yourself
If you apply for pre-approval directly with a bank, that's a formal credit application, and it leaves a hard enquiry on your credit file. Apply with two or three banks to "compare," and you've stacked up multiple enquiries in a short window — which lenders can read as a warning sign, and which can genuinely dent your credit score right when you need it strongest.
The Rule of Thumb
Browsing rates online is harmless. Lodging applications to compare offers is not. Let one person run one well-chosen application instead.
There's one more difference worth knowing. Mortgage brokers are bound by a legal Best Interests Duty — we're required by law to act in your best interests when recommending a loan. Banks, when selling you their own products directly, are not. That's not a criticism of banks; it's just a structural fact about who is obliged to be on your side of the table.
| Going direct to a bank | Working with a broker | |
|---|---|---|
| Products compared | One lender's menu | 40+ lenders, matched to your situation |
| Cost to you | Free | Free — the lender pays the broker |
| Legally required to act in your best interests | No | Yes — Best Interests Duty |
| Credit file impact of comparing | One enquiry per bank you apply with | One enquiry, once we've chosen together |
| Who chases the paperwork | You | Your broker |
Common Questions
The things everyone wants to ask (so just ask)
Nothing — and I know how that sounds. Brokers are paid a standard commission by whichever lender you end up choosing, and the rates and products you get through a broker are the same as (and often better than) going direct. If you refinance away within roughly the first two years, the lender claws that commission back from the broker — which means I'm financially incentivised to get the loan right the first time and support you long after settlement. Your interests and mine point the same direction.
You can browse any time, but before you make an offer or bid at auction, yes — pre-approval is what tells you your real budget and makes agents take you seriously. The good news: it's step three of the process, arranged for you, not something you need before your first conversation.
Yes — brokers access the same products and pricing as the bank's own channels, and can often request pricing discounts on your behalf. Special policies (like LMI waivers for certain professions and industries) are also available through brokers, not just through the bank's internal teams.
There's no such thing. Even if buying is a year or more away, an early conversation tells you exactly what to work on — deposit size, spending patterns, credit history — so that when you're ready, everything is already in place. The costly mistake is leaving it until after you've found a property you love.
Just your questions and your rough plans. No paperwork is required for the first chat — documents come later, through a secure portal, once you've decided to go ahead.
Want to do some homework first? These are good next reads: guidelines for first-time buyers, the pre-approval process, and how much can I borrow?
The first step is just a conversation
Bring your questions and your rough plans — nothing else required. If you're not sure whether you're even ready to start, that's precisely what the first conversation is for.