Choose a mortgage broker to compare and arrange a home loan. Choose a financial adviser for a broader financial plan, including personal advice about investments or superannuation. When borrowing affects your investment or retirement plans, you may need both professionals working within their separate authorisations.
Choose the Professional for Your Decision
A mortgage broker suits a decision about which home loan meets your needs and how to apply. For questions about your financial goals and the products that support them, an authorised financial adviser can prepare personal advice.
If you want to refinance an existing mortgage, start with a broker. If you want advice about your superannuation investment options before retirement, start with an adviser authorised for that work. If a planned property purchase changes your retirement budget, involve both before committing to the purchase.
The mortgage broker guide explains the broking role in more detail. For this choice, separate the loan question from the wider planning question and give each professional a clear brief.
Compare What Each Professional Can Do
Mortgage brokers provide credit assistance, while financial advisers provide financial product advice within their authorised scope. The difference affects what they can recommend and the documents you receive.
If someone calls themselves a mortgage adviser, ask which lenders they can compare and check their credit authorisation. To get a recommendation about superannuation or investments, check their financial advice authorisation separately.
| Comparison | Mortgage broker | Financial adviser |
|---|---|---|
| Scope | Home-loan options and the borrowing application. | Financial planning and advice about authorised products, such as superannuation or investments. |
| Authorisation | An Australian credit licence or authority to act under a credit licensee. | Authority under an Australian financial services licence for the advice given. |
| Deliverables | Loan comparisons, an explanation of the recommendation and help with the application. | A financial plan and required advice documents, including a Statement of Advice where applicable. |
| Payment | Usually lender-paid commission. A direct client fee can also apply. | Agreed advice fees. Some insurance recommendations can involve permitted commissions. |
The Australian Securities and Investments Commission (ASIC) describes separate requirements for credit activities and financial product advice. Holding one authority does not automatically confer the other. A business that provides both services must have the relevant authority for each.
An incorrect assumption is that a broker can recommend a super fund because they arranged your mortgage. The correct approach is to establish whether that person also has the financial-advice authority for that recommendation.
For personal advice about relevant financial products, check the individual on ASIC’s Financial Advisers Register. It records registration status and the products they can advise on. A job title or referral alone does not establish that authority.
Understand Fees and Conflicts Before Appointing
Ask each professional for a written explanation of who pays them and what your agreed service costs. A broker’s commission and an adviser’s fee describe different payment arrangements, and neither establishes the quality of the recommendation.
Moneysmart explains broker remuneration: lenders generally pay commission, usually with upfront and ongoing payments. Some brokers charge you directly. A direct fee requires a written quote that you sign before the broker provides the services and requests payment.
Ask the broker which lenders they compare and how commission differs between those lenders. Separate any broker fee from the lender’s loan fees so you understand the total borrowing cost.
Financial advice can involve a fixed fee, hourly charges or a percentage of assets. Initial advice and implementation can have separate charges. Ongoing reviews can add recurring fees. Moneysmart’s advice-cost guide also distinguishes advice fees from product costs and permitted insurance commissions.
Request the adviser’s Financial Services Guide, or the permitted website disclosure information, alongside your written service agreement. Ask for percentage fees in dollars and confirm whether GST is included. Identify what you pay initially, what repeats and how you end an ongoing arrangement.
Ask both professionals about referral payments and business relationships that could affect their recommendations. Moneysmart’s guide to choosing an adviser explains why services and product-provider relationships belong in that discussion.
Coordinate Advice Without Losing the Loan Context
When a property decision affects retirement or investments, give the broker and adviser the same assumptions and agree who answers each question. Their work then informs one decision without merging their legal roles.
Consider this illustrative example. A couple wants to buy a smaller home and reduce their working hours. They expect to keep a mortgage, but also want to understand what the repayments mean for their retirement plans.
The broker assesses borrowing options using the couple’s income and expenses, including their intended change in working hours. The broker compares loan terms and explains the application requirements. The lender makes the lending decision.
The adviser considers the planned repayments alongside the couple’s retirement goals. Within their authorisation, the adviser assesses the implications for superannuation and investments. The adviser can model a lower borrowing amount if the initial repayments leave too little for the couple’s other goals.
With the couple’s consent, the broker shares the proposed loan balance, repayment estimates and assumptions about future income. The adviser shares the agreed budget and relevant planning assumptions. Each professional confirms which documents they need and how information will be shared securely.
If the plan changes the deposit or target loan amount, the broker reassesses the borrowing proposal. Before proceeding, ask each professional to confirm their own recommendation using the same agreed figures.
