What does a Mortgage Broker Really Do?
When I first left the bank and became a mortgage broker, I had some pretty strong ideas about how the role worked…
In my mind, being a mortgage broker would be straightforward: submit a client’s application to a range of lenders, wait for the approvals to roll in, and then start negotiating. I’d compare rates, pit the banks against each other, and drive a bidding war until someone cracked with the sharpest offer. My thought process was simple — if a bank wanted the business, they’d make it happen.
I genuinely believed I was doing the best thing for my clients.
And for a while, it worked.
THE CALL THAT CHANGED EVERYTHING
About a year in, I got a call from one of the banks I’d submitted 52 mortgage applications to. Only one of those had resulted in an actual settlement!
Their Business Development Manager (BDM) — someone I’d never spoken to before — rang me and asked why I was sending so many mortgage applications with so few settlements.
I told her (quite matter-of-factly): “Well, your pricing wasn’t competitive. If your offers were better, you’d be getting more of the business. I work for my clients.”
I expected her to take that as constructive feedback. Instead, she pushed back. She told me I wasn’t meeting the bank’s conversion ratio — something I hadn’t even heard of at that point — and that I was, in their opinion, misusing their systems.
Before long, my accreditation with that bank was cancelled. Just like that, I could no longer submit mortgage applications to them.
At the time, I didn’t see it as a big loss. I wasn’t placing much business there anyway. And truth be told, I shared that story with clients who had loans with that bank — often prompting them to refinance elsewhere.
Over the next few years, I probably refinanced around $30 million worth of loans away from that lender.
THEN, THE COFFEE THAT CHANGED MY MIND
Three years later, I received a call from a new BDM at that same bank. The previous one had been promoted, and this new person invited me for a coffee.
I was still a bit salty, but I went along and shared my story.
Rather than argue, she listened — and then said something that changed how I operated:
“Let’s start fresh. Before submitting applications just to get pricing, flick me an email. Let me know some basic info — LVR, income, affordability — and I’ll come back with an indicative offer for you. That way, you’ll know whether it’s worth applying for the mortgage or not.”
And that made sense.
From that moment forward, I changed how I approached every bank — not just that bank. I began requesting indicative pricing from lenders before submitting mortgage applications. It saved everyone time and avoided unnecessary credit enquiries for my clients. More importantly, it allowed me to give clearer, faster advice.
Ironically, today that same bank is one of the lenders I use the most. They’ve become more competitive, and I now have a strong working relationship with them.
SO, WHAT DO I ACTUALLY DO AS A MORTGAGE BROKER?
When clients sit down with me, they’re often surprised at how quickly we get to the good stuff.
Within the first 20 minutes, I can usually tell you:
What interest rates are available for your situation
Which lenders are likely to approve your mortgage
What structures and features might suit your goals
And how to approach your mortgage strategy based on your long-term plans
Why so fast? Because I already know what most lenders are offering. I’ve done the groundwork before you even walk through the door.
That lets us focus on the important stuff — not just price tags.
How will the mortgage repayments fit into your budget?
What are your goals over the next few years?
Are you planning a big trip?
Thinking about retirement?
Saving for a renovation?
We also talk about mortgage interest rate risk — not just what’s cheapest right now, but how to protect you from future increases.
It’s easy to be drawn to the best one-year rate, but what about 3 or 5 years from now? A mortgage is a long-term commitment — not just a short-term sprint.
WHERE THE FMA FITS IN
Interestingly, a few years after I’d changed my process, the Financial Markets Conduct Act came into play — along with the FMA’s Code of Conduct for financial advisers.
The FMA requires that licensed financial advisers:
Put the client’s interests first
Only recommend suitable products
Take reasonable steps to understand the client's needs and situation
Communicate clearly, act with integrity, and keep records
This framework aligned perfectly with what I was already doing!
By stepping back from treating mortgage brokering as a price war, and instead focusing on strategy, suitability, and long-term client outcomes, I was already operating in line with the FMA’s expectations — before it was even a legal requirement.
That reinforced for me that the changes I’d made weren’t just good business — they were the right thing to do.
FINAL THOUGHTS
Being a mortgage broker isn’t about blasting applications to every bank and playing games with interest rates.
It’s about:
Knowing the lender landscape
Asking the right questions
Understanding your lifestyle, budget, and long-term plans
And giving mortgage and financial advice that supports your goals — not just now, but for years to come
So if we meet for a chat, don’t be surprised if we skip the fluff and get straight to the heart of what matters — what you need from your home loan, how it fits into your life, and how we can structure it to give you better flexibility, protection, and peace of mind.
That’s what I do. And that’s what a good mortgage broker should do.
Our blog is not intended to be taken as personal tax or financial advice
and is for informational purposes only.
Before acting on this information, contact WealthHealth mortgage brokers
to ensure it is suitable for your circumstances.