Skip to main content

How Do Brokers Work?

How do brokers work?

Mortgage brokers in Australia are professionals who act as intermediaries between borrowers (homebuyers/property owners) and lenders (banks and financial institutions) to help individuals secure home loans or mortgages.

The primary role of a broker is to assist clients in finding the most suitable mortgage product that meets their financial needs and objectives.

A brief description on the process for obtaining a loan through Smyth Loan Co:


Initial Consultation:

Upon contacting Smyth Loan Co, Jason and his team will conduct an initial consultation to understand your financial situation, borrowing needs, preferences, & objectives.


Research & Comparison:

After gathering the necessary information from you including basic personal details, employment history, assets, liabilities & living expenses, the Smyth Loan Co Team will research and compare mortgage products from various lenders in our panel or network. 
We have access to a wide range of lenders, including major banks, credit unions, and non-bank lenders such as mortgage funds.



With our user-friendly online platform, you can access our services anytime, anywhere. No need to schedule in-person meetings or visit multiple banks; everything can be done from the comfort of your home.



Application Submission:

Once you have decided on a particular loan or mortgage product, we will complete the application and compile the necessary documentation for lodgement. 
There can be quite a few items a bank asks for on this step.


Liaising with Lenders:

Smyth Loan Co will then submit your application to the lender of your choosing, liaising an as intermediary between yourself and the lender during the assessment process.
There may be several phone calls or emails during this process. We are generally pretty thorough and in some cases don’t have any issues raised by a bank at all from submission to approval.


Approval & Settlement:

As soon the lender approves your application, Jason & his team will notify you immediately. We will then assist in finalising the signing of loan documentation and any requirements such as insurance, guiding you through the settlement process and funding of your loan.

Remuneration of Mortgage Brokers in Australia:

Mortgage brokers in Australia typically receive remuneration in the form of commissions paid by banks or lenders for the writing of a loan, after settlement.

These commission payments are not paid directly by you as a borrower to a broker, but are paid by the bank as a referral of your business. 
Banks generally have large margins, or make lots of money on any given loan (i.e. the difference in what it costs them to provide the money, & the rate they charge you to repay it), which is where these commission payments are generally paid from.

There are two main sources of commission generally paid:

1. Upfront Commission: When a mortgage broker successfully settles a home loan for a borrower, the lender pays them an upfront commission. This commission is usually a percentage of the loan amount. The percentage can vary depending on the lender and the specific mortgage product, with payments made by a bank 2 x months proceeding settlement.
These commissions are fully repayable by a broker-to-a-bank should the loan be repaid within a certain timeframe – In most cases it is within 2 years from settlement. Keep this in mind and contact us if thinking about making any changes to your loan within the first 1-2 years.

2. Trail Commission: In addition to the upfront commission, mortgage brokers may also receive a trail commission, which is an ongoing payment. The trail commission is calculated based on the outstanding loan balance and is paid to the broker for the duration of the loan.

Remember to always speak with us beforehand should you be looking to do anything that may affect your loan.


What will it cost me if I do a loan through Smyth Loan Co?

It all depends on what you need us to do and how much work is involved.

Our initial consultations are free however we normally do have a $300+ GST Administration Fee should we proceed with an application to a lender. This fee covers the time and cost for us to prepare your loan application with the bank and submit. Every application is different and normally takes us up to a day to prepare from when we hold all of your information. Lending requirements and compliance obligations since the banking royal commission and best interest duties are substantial.

We try to provide banks with as much relevant information as possible from the get go, in return for a quick decision and approval.
We hate wasting time on unnecessary phone calls or emails.
As per the picture – we ‘get s#~t done.’

For complex borrowing situations i.e. self-employed, trusts, multiple investment properties or income streams, SMSF, or Government Schemes we may apply a higher upfront charge and/or brokerage due to the added requirements in vetting the situation and subsequent time required to process this information as thoroughly as possible for a quick response from a lender.

We will always disclose any fees prior to undertaking work on your behalf & disclose in a written credit quote.

One last thing:

It’s important to note that the Australian Securities and Investments Commission (ASIC) regulates mortgage brokers to ensure that they act in the best interests of their clients and provide appropriate advice.

Since the remuneration structure involves commission-based earnings, there have been discussions about potential conflicts of interest. As a result, regulations have been introduced to promote transparency and ensure brokers prioritise the client’s interests when recommending mortgage products.

Smyth Loan Co most certainly agrees with these rules & will always put your interests above everything else.

Ready to make the move?

Get in Touch
Ready to discover the keys to increasing your borrowing capacity? We’re sharing our best tips to help you improve your borrowing power! 🔑📈

Tip 3: Optimise your expenses

How much you’re spending day-to-day can play a role in determining what you can borrow. Take a closer look at your monthly expenses - from service providers to healthcare and of course, Uber Eats! Identify areas where you can trim and ideally redirect those funds towards loan repayments.

If you want to chat to an experienced broker who can help you identify ways to increase your borrowing capacity, get in touch today!

#MortgageBroker #MortgageTips #BorrowingCapacity #FinancialFreedom #FinancialGoals #DebtFreeJourney
💡 If you’re an investment property owner, understanding property depreciation is essential! Here’s why:

🏡 What is property depreciation?

Property depreciation is a tax deduction available to investment property owners. It refers to the wear and tear on the building and its fixtures over time, not the overall market value of the property.

🔍 How does it work?

The Australian Taxation Office (ATO) allows you to claim deductions in two ways:

Diminishing Value Method: Higher deductions in the early years.

Prime Cost Method: Equal deductions over the property’s life.

📉 Example:

Diminishing Value: If your property was purchased for $500,000, you could claim $25,000 in the first year.

Prime Cost: With a 2.5% annual deduction, you would claim $12,500 each year.

💸 Why claim depreciation?

Claiming depreciation reduces your taxable income, meaning you pay less tax. This reflects the natural wear and tear on your property.

🤔 Want to learn more? Hit follow or reach out to us today!

#InvestmentProperties #PropertyDepreciation #MortgageBroker #HomeLoans
Reminder! 🚨

We can help with a wide range of services including home loans, business loans, asset finance, debt consolidation, refinancing and much more!

Reach out today via the details on our page to learn more.

#MortgageBroker #HomeLoans #RefinanceLoans #AssetFinance #BusinessLoans
Need to bridge the gap between your current and future home? 🏠💰

Whether you're upsizing, downsizing, or relocating…bridging loans offer the solution to seamlessly transition to your next property, before selling your current one.

Contact us today via the info on our page to learn more!

#MortgageBroker #BridgingLoans #SeamlessTransition #HomeOwnershipJourney
... just a quick one though! 

Loans 📈📉 to write 💻🖱✍️ 
Dreams 🌄🏠 to secure ✨️ ✅️ 

#gettingitdone #smythloanco
Ready to discover the keys to increasing your borrowing capacity? We’re sharing our best tips to help you improve your borrowing power! 🔑📈

Tip 2: Income — Higher income translates to a higher borrowing capacity.

If you’re able to, explore opportunities to increase your earnings: take on extra work, negotiate a raise, or tap into alternative income streams.

If you’ve recently increased your overall income and want to chat to a professional about what it means for your borrowing capacity, get in touch today!

#MortgageBroker #MortgageTips #BorrowingCapacity #FinancialFreedom #FinancialGoals
Don't let financial stress weigh you down! 📉 It's time to take control of your finances and explore your options.

💰✨ Refinancing your loan could be the game-changer you've been looking for. With our expert guidance, you can potentially lower your interest rates and save big bucks in the long run. 🏡💸

Don't wait until it's too late! Reach out today and let's discuss how we can help you ease that pressure and put more money back in your pocket.

#MortgageBroker #Refinance #FinancialFreedom #SaveMoney
Not bad on the cheeks either #goodchair 😂