Should I Use a Buyers Agent or a Mortgage Broker?

What does a mortgage broker actually do?

Mortgage brokers are finance specialists who help you secure home loans:

• Loan comparison: They compare loan products from multiple lenders to find the best interest rates and terms for your situation
• Finance pre-approval: They help you secure pre-approval so you know your borrowing capacity before searching for properties
• Application management: They handle the loan application process, documentation, and liaise with lenders
• Lender relationships: They have relationships with banks and lenders that may offer better rates or faster approvals
• Ongoing support: They assist with refinancing, restructuring, or accessing equity in the future
• Paid by lenders: Most mortgage brokers are paid commission by lenders, so their service is often free to you

Mortgage brokers are essential for getting finance approval and competitive interest rates. They handle the money side of property purchase.

What does a buyers agent actually do?

Buyers agents are property specialists who help you find and purchase properties:

• Property search: We identify properties matching your criteria across target suburbs
• Off-market access: We provide first access to 60% of properties that are off-market or pre-market
• Property inspections: We attend inspections on your behalf and provide detailed evaluations
• Due diligence: We conduct building/pest inspections, contract reviews, and council checks
• Negotiation: We negotiate purchase price on your behalf, saving clients an average of $65,000
• Auction representation: We bid strategically at auctions to secure properties
• Paid by you: We charge a 2-3% fee (including $4k upfront booking fee) when you successfully purchase

Buyers agents handle the property side of your purchase. We find it, evaluate it, negotiate it, and secure it.

How do they work together?

Mortgage brokers and buyers agents complement each other perfectly:

• Step 1 (Mortgage broker): Get pre-approved for finance so you know your budget
• Step 2 (Buyers agent): Search for properties within your pre-approved budget
• Step 3 (Buyers agent): Identify the right property and negotiate purchase price
• Step 4 (Mortgage broker): Finalize loan approval for the specific property
• Step 5 (Both): Coordinate settlement with solicitors

In fact, we recommend getting pre-approval through a mortgage broker before engaging our buyers agent services. This makes you a more attractive buyer and allows us to move quickly on opportunities.

Why can't a mortgage broker help me find properties?

Some mortgage brokers offer property search referrals, but they're not property acquisition specialists:

• No off-market access: Mortgage brokers don't have relationships with selling agents to access off-market properties
• No negotiation expertise: They're finance specialists, not property negotiation experts
• No due diligence: They don't conduct building/pest inspections or comprehensive property analysis
• Conflict of interest: If they're paid commission by lenders, they're motivated by loan size, not property suitability
• Limited time: Property search requires 100+ hours per client, mortgage brokers can't dedicate this time

Mortgage brokers excel at finance. Buyers agents excel at property acquisition. Use each for their specialty.

Do I need both for my first property purchase?

First home buyers benefit enormously from both:

• Mortgage broker: Helps you navigate first home buyer grants, understand borrowing capacity, and secure competitive interest rates. Essential for first-timers unfamiliar with finance.
• Buyers agent: Helps you navigate property search, avoid overpaying due to inexperience, access off-market opportunities, and handle Queensland's unconditional auction system. Crucial for competing against experienced investors.

Many first home buyers tell us they wish they'd engaged both earlier, saving themselves months of stress and potentially $50,000+ in overpayment and mistakes.

What's the cost difference?

Both services have different cost structures:

• Mortgage brokers: Usually free to you (paid commission by lenders). Some charge fees for complex situations.
• Buyers agents: We charge 2-3% of purchase price (including $4k upfront booking fee), paid when you successfully purchase

The buyers agent fee is higher, but we save clients an average of $65,000 through negotiation, typically exceeding our fee. For investment properties, buyers agent fees are generally tax deductible.

Which should I engage first?

We recommend this sequence:

1. Mortgage broker first: Get pre-approved for finance so you know your exact budget
2. Buyers agent second: Once pre-approved, engage us to search for properties within your budget

This sequence ensures we don't waste time showing you properties you can't finance. It also demonstrates to selling agents that you're a serious, finance-approved buyer, giving us negotiation leverage.

However, we can recommend trusted mortgage brokers if you haven't engaged one yet. Many of our clients come to us first, and we connect them with finance specialists before beginning the property search.