How Mortgage Broking Works
What a mortgage broker actually does, how we get paid, and what to expect from the process.
What Does a Mortgage Broker Do?
A mortgage broker acts as an intermediary between you and a panel of lenders. Instead of applying to a single bank and hoping for the best, a broker compares products across multiple lenders, helps you understand which loan features actually matter for your situation, and manages the application process on your behalf — from initial assessment through to settlement.
How Do Brokers Get Paid?
Most mortgage brokers, including AJ Capital Australia, are paid a commission by the lender once a loan settles — typically an upfront commission plus a smaller ongoing "trail" commission for as long as the loan remains active. This means there is generally no direct cost to you for using a broker. Any fees or additional payments a broker may receive must be clearly disclosed before you proceed — see our Credit Guide for our specific disclosures.
The Typical Process
- Initial assessment: we discuss your goals, income, expenses and existing debts to understand your borrowing position.
- Lender and product comparison: we compare options across our lender panel based on rate, features, fees and suitability for your circumstances.
- Application and documentation: we help prepare and submit your application, including gathering supporting documents like payslips, bank statements and identification.
- Approval and settlement: we liaise with the lender through conditional approval, formal approval and settlement, keeping you informed at each stage.
Pre-Approval vs Formal Approval
Pre-approval (also called conditional approval) gives you an indication of how much a lender is likely to lend you, based on the information provided at the time. It is not a guarantee. Formal (unconditional) approval happens after the lender has assessed the specific property you want to buy, including a valuation, and is the confirmation you need before you can rely on the loan proceeding.
What to Bring to Your First Conversation
- Recent payslips or evidence of income (including for any self-employment)
- Details of savings, existing loans, credit cards and other debts
- An estimate of your regular living expenses
- Identification documents (driver's licence, passport, etc.)
Get an Early Estimate
Before your first conversation with us, our Borrowing Power Calculator and Mortgage Repayment Calculator can give you a rough starting point.
General information only. This guide is general in nature and does not take into account your personal objectives, financial situation or needs. Before acting on any information, you should consider whether it is appropriate for your circumstances. AJ Capital Australia is a credit representative (CRN 568438) of Beagle Finance Pty Ltd (ACL 383640) — see our Legal Disclosures for full details.