What lenders do personal loan brokers work with?

Personal loan brokers collaborate with various lenders, including banks, credit unions, and online lenders. However, each broker typically has relationships with a specific group of lenders, which may limit the range of loan options available to you.

What are the pros and cons of using a personal loan broker?

Pros include saving time on research, personalized loan matching, assistance with applications, and support for complex financial situations. Cons involve potential limited lender options, possible biases due to commission structures, additional fees, and the process potentially taking longer than applying directly.

Do brokers charge a fee for personal loans?

Some personal loan brokers charge fees up to $990 for their services. This fee can often be paid directly or added to your loan amount, which would accrue interest over the loan term. Additionally, lenders may impose their own upfront fees.

Personal Loan Broker: Do You Really Need One?

Should you use a personal loan broker?

Updated 27 Aug 2025

A personal loan broker can save you time, compare deals and even negotiate on your behalf – but is it the right move for you? Here’s what you need to know before deciding.

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Our dedicated team of Money.com.au Personal Loan experts is here to help.

What is a personal loan broker?

A personal loan broker is a finance professional who acts as the middleman between you and a lender. Their job is to match you with a suitable personal loan, often by comparing options from a panel of lenders.

Some brokers specialise in helping certain kinds of borrowers, such as people looking for bad credit personal loans or self-employed workers who need a low doc personal loan.

While most people associate brokers with mortgages, there are also car finance brokers, business loan brokers, and of course, brokers for personal loans. With Australians borrowing around $2.5 billion in personal loans every month, it’s no surprise that many turn to brokers for guidance, especially if their financial situation is a little more complex.

But there are trade-offs you should know about before deciding if using a broker for a personal loan is a good idea.

What do personal loan brokers do?

If you use a personal loan broker, they will usually ask a series of questions related to your financial situation and the purpose of the loan. For example, are you borrowing to consolidate debt or looking for a medical loan? Based on your information, a broker will:

Assess your situation and lender options

A broker starts by looking at your financial profile – things like income, credit history, employment and how much you want to borrow. They’ll then consider which lenders in their panel are most likely to approve your application and offer competitive terms.

Compare and recommend loan options

Once they’ve narrowed down the choices, a broker will present you with personal loan options that best fit your needs. This typically covers interest rates, fees, loan features and repayment flexibility. The comparison is personalised, reflecting your financial situation, not just advertised rates, so you get a tailored shortlist without having to review dozens of lenders yourself.

Handle negotiations

After you choose a loan, the broker acts as the go-between with the lender. They’ll manage the paperwork, clarify the lender’s requirements, and sometimes even negotiate on your behalf to help secure a better deal.

Guide you through the application process

A good broker doesn’t just connect you to a lender. They also help you understand what’s needed to get your loan approved. They can advise on documents to prepare, highlight any red flags that might delay approval, and keep the process moving smoothly.

Who do personal loan brokers work with?

Personal loan brokers usually partner with a panel of lenders, which may include banks, credit unions, online lenders and other financial institutions.

It’s worth noting that they don’t cover the entire market. Each broker has their own set of lenders they work with, so the options you’re shown will be limited to that pool.

This is an important point to consider when deciding whether to use a broker. That’s because the quality of your loan options depends on the lenders they have access to.

Pros & cons of using a personal loan broker

Pros

Save time and effort by doing the research and loan comparisons for you.

Understand your circumstances to match you with the most suitable options.

Manage most of the forms and requirements to get your application submitted.

Support complex situations, such as a bad credit score, irregular income or self-employment.

Offer ongoing assistance, including refinancing if a better deal becomes available.

Receive payment from the lender, so you typically don’t pay any upfront fees.

Cons

Limit your options, as many brokers work with only a set group of lenders, which may mean missing out on better deals elsewhere.

Delay your funding, since going through a broker can sometimes take longer than applying directly.

Spend effort finding a good broker, which can be as time-consuming as finding a suitable personal loan yourself.

Navigate potential conflicts of interest, because some brokers may steer you toward affiliated products from companies they are connected with.

In most cases, you will not pay a fee to use a personal loan broker. This is because brokers are usually paid a commission by the lender for arranging the loan and bringing them business.

There are some exceptions. If your financial situation is more complex, such as having a poor credit history or can’t provide traditional documents like payslips, a broker may charge you a fee. If that applies, they will disclose it upfront, and you can always ask to confirm before proceeding.

Some brokers charge service fees regardless. These are usually in the range of $250 to $500, although in some cases they can be as high as $990. You will generally have the option to pay this fee directly to the broker or add it to your loan.

Keep in mind that if you add the fee to your loan balance, you will also pay interest on it over the life of the loan.

Personal loans may come with fees charged by the lender, not the broker. These can include establishment or application fees, ongoing account fees (monthly or annual), and late payment charges. A good broker will not only search for a competitive interest rate but may also negotiate with the lender to reduce or even waive some of these fees.

Are personal loan brokers worth it?

Not everyone needs to use a personal loan broker. In fact, it can be very easy to find and apply for a personal loan yourself.

And of course you can use online tools like a personal loan calculator to help crunch the numbers. But for a lot of Australians, personal loan brokers offer a very valuable service.

Which category do you fall into…

May be able to do it yourself

Confident in applying for a loan

Happy to do your own research

Have a good credit score

Employed and can provide payslips

Can apply with any lender

May need a personal loan broker

Not confident dealing with finances

No time to research loan options

Have a poor credit history

Self-employed or irregular income

Need access to specialist lenders

If you decide that working with a personal loan broker is the way you want to go, here are some pointers to help find the best one you can.

Ask for recommendations
A reputable broker will have plenty of experience and a track record of satisfied clients. Look for online reviews or ask friends and family for referrals. Hearing about other people’s experiences can give you confidence in your choice.
Check their lender panel
Make sure the broker works with a broad range of lenders, including banks, credit unions and online lenders. A larger panel means you are more likely to find a loan that suits your specific needs.
Gauge how they communicate
Pay attention to how responsive and clear they are when answering your questions. A good broker should explain options in plain language, keep you updated throughout the process, and make you feel comfortable asking for clarification.
Do your research
Even when using a broker, it’s worth doing your own homework. Understand your own financial situation, compare loan features, and know what interest rates and fees are reasonable. Personal loans can last up to seven years, so you want to make sure your broker is on the ball in finding you the best possible deal.

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FAQs about personal loan brokers

Can a broker help me get a better interest rate on a personal loan?

Yes. A broker compares offers from multiple lenders and may negotiate on your behalf to secure a competitive rate. While they cannot guarantee the lowest rate, they aim to find the most suitable deal for your needs, which may also include useful features like flexible repayments or a redraw facility.

How does getting a personal loan through a broker work?

You share your financial details with the broker, who then matches you with suitable lenders, presents loan options, and manages the application process on your behalf. They will usually keep you updated by phone or email as your application progresses.

Is it better to go with a bank or a broker for a personal loan?

It depends on your situation. A bank can only offer its own products, while a broker gives you access to a wider range of lenders, increasing your options and chances of approval. Brokers also understand how lenders assess applications. However, they don’t cover the entire market, so you’ll only see loans from their panel.

How do personal loan brokers act in my best interests?

Brokers are legally required to recommend loans that genuinely suit your needs and financial situation. Under the National Consumer Credit Protection Act 2009, they must act in your best interests and disclose any commissions or potential conflicts of interest upfront.

Do I have to pay a broker to arrange a personal loan?

Often no. Most brokers are paid a commission by the lender, but some may charge a service fee which they must disclose upfront. It’s always best to ask early on so you know whether any costs apply.

Can a broker help if I have bad credit?

Yes. Some brokers specialise in finding lenders willing to work with borrowers who have poor credit histories or non-standard income. Brokers typically work with a variety of borrowers and can draw on past experience to help you find a loan even if your finances are hazy.

Does using a broker affect my credit score?

Not directly. Brokers usually do preliminary checks, but each loan application with a lender may involve a credit inquiry that can impact your score temporarily. This is why it’s best to avoid applying for multiple personal loans at the same time.

Can a broker help me refinance my personal loan later?

Yes. Many brokers offer ongoing support and can help you refinance if a better deal becomes available. They can also review your current loan to compare it against other options and advise whether refinancing makes financial sense.