Compare your offered rate against the RBA's published lending rates, check comparison sites like Canstar or RateCity, and ask your broker to show you the full panel of lenders they compared. Under the Best Interests Duty introduced in 2021, mortgage brokers must legally demonstrate they considered your circumstances — not just offer whichever lender pays the highest trailing commission.
What it depends on
The full answer depends on your specific circumstances. Here’s what matters.
The type of rate you're comparing
Make sure you're comparing like-for-like: variable vs fixed, principal-and-interest vs interest-only, owner-occupier vs investor. The RBA publishes average outstanding variable rates monthly. A rate 0.5–1.0% below the average for your loan type is generally competitive in 2026 — but the comparison rate (which includes fees) is more important than the headline rate.
Your broker's lender panel
Most brokers don't have access to every lender. They work from a panel — typically 20–40 lenders. Some lenders (including most major banks) also have 'direct' rates not available through brokers. Ask how many lenders your broker compared and whether any off-panel options might suit you better.
The comparison rate — not just the headline
The comparison rate factors in standard fees and charges over the life of a $150,000 loan over 25 years. It's mandated by the National Consumer Credit Protection Act 2009. A low headline rate with high ongoing fees can cost more than a slightly higher rate with minimal fees.
Your specific borrowing profile
Your rate depends on your LVR (loan-to-value ratio), employment type, loan size, and property type. Self-employed borrowers, those with LVR above 80%, or those buying non-standard properties typically pay higher rates. The 'best' rate is the best rate available to someone with YOUR profile — not the advertised rate for a prime borrower.
The last 10%
What a qualified professional can add
The answer above covers the general position. Here’s where professional judgement — applied to YOUR specific situation — makes the difference.
- Accessing lender pricing that isn't publicly advertised — including discretionary discounts for specific borrower profiles
- Structuring the loan to optimise your specific situation (offset vs redraw, split variable/fixed, investment vs personal)
- Navigating complex scenarios: self-employed income, multiple properties, SMSF lending, construction loans
- Handling the application process and negotiating with lenders on your behalf — including rate reviews on existing loans
Questions to ask before you engage one
If you decide to engage a professional, these questions help you evaluate whether they’re right for your situation.
How many lenders did you compare for my specific situation, and can I see the comparison in writing?
What trailing commission do you receive from this lender versus the alternatives you considered?
Is this the comparison rate or the headline rate — and what fees are excluded from the headline?
Are there any lenders not on your panel that might offer a better deal for my profile?
What happens if interest rates change after settlement — will you proactively review my loan?
Your next step
Check the RBA's lending rates page for current averages by loan type, then compare your offered rate against at least two comparison sites. Ask your broker for a written comparison showing the lenders they assessed. Explore our Home Loans domain for more on understanding your mortgage.
General Advice Warning
The information on this page is general in nature and does not take into account your personal objectives, financial situation or needs. It is provided by Global Mutual Funds Pty Ltd (ABN 20 090 555 436, AFSL 222640) and should not be relied upon as a substitute for professional advice. Consider whether the information is appropriate before acting on it. Read our Financial Services Guide.