Should you use a personal loan broker?

  • Learn everything you need to know about using a broker for your personal loan.
  • Compare your best personal loan offers for free, including interest rates, repayments, and more.
A personal loan broker on his phone in front of a laptop in a cafe setting
A personal loan broker on his phone in front of a laptop in a cafe setting

In this guide, you'll find:















Personal loan brokers in Australia

A lot of people associate brokers with mortgages, but there are also personal loan brokers. It's not surprising many of us need help, given personal loan borrowing was at record highs in 2023.

Particularly if your finances are complex, a personal loan broker can make it easier to get a loan.

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

Pros of using a loan broker

What is a personal loan broker?

A personal loan broker is a finance professional who helps you get a personal loan. They work as an intermediary between borrowers and lenders. Ideally, they will help you find the most suitable personal loan offer from a selection of lenders.

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

There are also specialist car loan brokers.

What exactly 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 (e.g. debt consolidation, medical loan, etc.). Based on your information, a broker will:

  • Assess their pool of lenders and decide which ones may be suitable.

  • Present you with their recommended personal loan options.

  • Deal with a lender on your behalf once you’ve decided on a loan and advise on how to get your personal loan application approved.

Who offers bad credit car loans

What lenders do personal loan brokers work with?

Personal loans brokers work with banks, credit unions, online lenders and other institutions that offer personal loans.

They don’t work with all lenders in the market. Each broker typically has a relationship with a pool of particular lenders.

This is an important factor when weighing up the pros and cons of working with a personal loan broker.

Pros of using a personal loan broker

  • A personal loan broker can save you the time and effort of researching different lenders and loan options.
  • They will get to know you and your circumstances so they can understand which loans may be best suited.
  • Most brokers will help their clients with the loan application as well.
  • They can be particularly helpful if you have a complex situation and standard lenders aren’t suitable.
  • Some will offer follow up services, like helping you to refinance your personal loan later on if a better deal is available.
  • A lot of personal loan brokers earn their money through commission paid by lenders, meaning you don’t pay an upfront fee for their services.

Cons of using a personal loan broker

  • Some brokers work with a relatively small pool of lenders, so you may not have access to all the best personal loan offers.
  • For some brokers who make their money through commission, some lenders pay them more than others. This may influence the broker’s recommendations.
  • The brokers who do not earn commission from lenders may charge high fees to their clients.
  • If you need a loan quickly, dealing with a broker can actually slow the process down.
  • It can be just as much effort to find a good broker as it is to find a good personal loan deal.
  • In some cases, brokers work for companies that also offers loans. They may simply try to sell you their own company’s personal loans.
How do personal loans work

Do brokers charge a fee for personal loans?

Some personal loan brokers charge a fee for their services which can be as high as $990. You’ll generally have the option to pay this fee directly to the broker without adding it to your loan amount.

If you choose to add it to your loan amount, you are also agreeing to pay interest over the loan term on it.

In addition to the personal loan broker’s fees, there may be additional upfront fees payable to the lender.

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 need a personal loan broker

  • Not confident dealing with finances
  • No time to research loan options
  • Have a bad credit history
  • Self-employed or irregular income
  • Needs a specialist lender

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
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How to find the best personal loan broker

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 good broker will have plenty of previous experience with clients and lots of success stories and recommendations. Look for online reviews or ask friends and family for a recommendation.
  • Ask about their lenders: Make sure they work with a broad selection of providers and don’t preference particular lenders.
  • Ask about their commission: It’s also important to understand how they get paid for their services and any effect this may have on the loans they recommend.

Like any other product or service, there are good brokers and ones you want to avoid.

A little research can go a long way to help you find a good broker. After all, with a personal loan that you could be repaying for up to seven years, spending some time understanding your options will be well worth it.

How we help you find the best personal loans

  1. Let us know who you are and what you're looking for. A little bit of information goes a long way in helping us find the right loans for you.

  2. Money Matchmaker® securely analyses your data against each lender. It finds the best loan offers that match your profile.

  3. Based on your situation, you'll see a range of qualified loan offers. Choose one and apply online today.


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Personal loans guides and resources

The great thing about personal loans is they can fund almost anything. They are perfect when you need that bit extra to cover expenses, start a project or reset your finances to get back on track.

Written by

Shaun McGowan founder

Loans Expert

Shaun McGowan

Reviewed by

Sean Callery Editor


Sean Callery


*Information about comparison rates: Comparison rates are designed to allow borrowers to understand the true cost of a loan by taking into account fees and charges, the loan amount and the term of the loan. The comparison rate is based on an unsecured fixed rate personal loan of $30,000 over 5 years. WARNING: Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.