If you’ve been searching for a finance broker and keep landing on mortgage broker websites, you’re not going mad — the two overlap a lot, and most people use the terms loosely. But they’re not quite the same job, and knowing the difference matters if what you actually need is a car loan, business finance, or something that isn’t a home loan.
What’s the Difference Between a Finance Broker and a Mortgage Broker?
A mortgage broker arranges home loans and refinancing. A finance broker does that too, but also arranges car loans, business finance, equipment finance and personal loans — the mortgage broker’s job is really a slice of the finance broker’s wider one.
In practice, most brokers who call themselves “finance brokers” do handle mortgages as part of a broader panel. The real difference is scope, not qualification level — both need the same Australian Credit Licence, or authorisation under one, because ASIC’s licensing regime for “credit activities” doesn’t split by loan type. As ASIC puts it, “if you engage in credit activities you will generally need an Australian credit licence or authorisation from a credit licensee before starting business” — and that covers arranging a car loan or a business facility just as much as a mortgage.
| Mortgage broker | Finance broker | |
|---|---|---|
| What they arrange | Home loans, refinancing | Home loans, refinancing, car loans, asset finance, business finance, personal loans |
| Panel | Lenders that write home loans | A broader panel that also covers personal, asset and business lenders |
| Typical question | “Which lender should I refinance with?” | That, plus “Should I finance this car through the dealer or my broker?” |
| Licensing | Australian Credit Licence (or authorised under one) | Same requirement — ASIC doesn’t license by loan type |
At Click Financial we work across both — we’re a mortgage broker and a finance broker, because most people’s borrowing doesn’t stay in one lane for long.
What Does a Finance Broker Do?
A finance broker compares loan products across a panel of lenders and matches you to the one that actually fits your situation, then manages the application for you. We do this across 40+ lenders, covering home loans, refinancing, first home buying, investment loans, debt consolidation, car finance, asset finance, business finance and personal loans.
Since January 2021, brokers have also been bound by the best interests duty — a legal obligation that requires brokers to act in your best interests whenever they provide credit assistance. Banks and other direct lenders aren’t bound by this duty. It’s exactly why the best interests duty exists: different lenders can pay slightly different commissions, and the duty is what stops that difference influencing the recommendation.
How Much Does a Finance Broker Cost, and Who Pays Them?
In most cases, a finance broker doesn’t cost you anything directly. As Moneysmart explains, “lenders generally pay mortgage brokers a commission for distributing their products, so you don’t pay them directly” — and that arrangement is standard across finance broking more broadly, not just mortgages. The commission is a percentage of the loan amount, “typically has both an upfront and ongoing payment,” and it comes out of the lender’s margin, not an extra cost added onto your loan.
It’s not universal, though — Moneysmart also notes that “sometimes brokers might charge you a fee directly,” and where that happens, it should be set out in a written quote before you commit to anything. We don’t charge fees to our clients for the services covered by lender commission; if that ever changed for a specific product, we’d tell you upfront, in writing, before you agreed to anything.
What Does a Personal Loan Broker Do, and When Is It Worth Using One?
A personal loan broker compares lenders on your behalf instead of you accepting the one or two rates your own bank quotes you. It’s worth using when you’re consolidating debt, making a large purchase, or you’d simply like to check whether the rate a bank quoted you is actually competitive.
We compare personal loan options across our panel the same way we compare home loans: by matching the lender to your situation rather than defaulting to whichever one pays the highest commission. If you’re consolidating existing debt, this sits alongside our debt consolidation service rather than replacing it — worth reading both before you decide which one fits.
What Does a Car Finance Broker Do Differently to a Dealership?
A car finance broker compares lenders on your behalf, the same way a mortgage broker does for a home loan, instead of you accepting whatever rate the dealership finance desk offers on the day. Dealership finance is convenient because it’s arranged on the spot, but convenience and the best rate aren’t always the same thing.
Comparing your car loan the same way you’d compare a mortgage — across a panel, on your terms, before you’re standing in a showroom — is the whole point of using a broker for it.
What Does an Asset & Equipment Finance Broker Arrange?
An asset finance broker arranges loans for equipment, machinery and other business assets — anything from a tradie’s new van to commercial equipment for a growing business. They compare structures (chattel mortgage, finance lease, hire purchase) and lenders, rather than you working through that alone.
This is a genuinely different product to a standard personal or home loan, with its own repayment structures and tax treatment considerations — worth a conversation with your accountant as well as your broker before you commit to a structure.
What Does a Business Finance Broker Arrange for a Business?
A business finance broker arranges funding for the business itself — working capital, equipment, expansion, or cash flow — as distinct from a home loan or personal borrowing. The lender pool, serviceability assessment and paperwork are all different to a home loan, which is why it’s usually a specific conversation rather than an add-on to a mortgage discussion.
If you’re a business owner already using us for a home loan or refinance, this is worth raising separately — business lending isn’t assessed the same way, and bundling the conversation too early can muddy both applications.
How Do You Find a Finance Broker Near You?
We’re based in Bankstown, NSW, and work with clients across Sydney, Brisbane, Melbourne, Perth and Adelaide — in person where that’s useful, and remotely everywhere else, since most of a finance application happens over phone, email and a portal rather than in an office.
If a home loan or refinance is the main thing on your mind, our Bankstown page covers that in more local detail. This page is the broader one — for when what you need doesn’t fit neatly into “mortgage.”
Is It Worth Using a Finance Broker Instead of Going Direct?
It depends what you’re financing, but the case for a broker is the same across every type of finance we arrange: a bank can only offer you its own products, understandably, while a broker can compare across a panel and isn’t limited to one lender’s appetite for your situation.
The trade-off is that a broker adds a step between you and the lender, and not every lender is on every broker’s panel — worth asking specifically what’s on ours if there’s a lender you already have a relationship with. For most people comparing more than one type of finance at once (say, a car loan and a mortgage in the same year), having one broker who can see both is usually simpler than running two separate applications yourself.
Whatever you’re financing — a home, a car, equipment, or the business itself — talk to a broker and we’ll tell you honestly whether comparing across our panel is likely to be worth your time, before you commit to anything.
Click Financial is a mortgage broker and finance broker based in Bankstown, NSW (Australian Credit Licence 390820, MFAA member 320936, AFCA member 25029), helping borrowers across Sydney, Brisbane, Melbourne, Perth and Adelaide compare home loans, car finance, asset finance, business finance and personal loans from 40+ lenders.