Finder makes money from featured partners, but editorial opinions are our own.
Personal loan brokers
A personal loan broker can save you time and help you find the right loan.
Personal loan brokers aim to help you find a loan that meets your needs and personal financial situation. Instead of applying directly with a lender, you apply for a loan via the broker instead. The broker will then contact the lenders that they are affiliated with, as well as search the market, to find you potential options.
While it can be helpful to have a professional ensure you find a good deal, you should keep in mind that your own personal loan comparison can be quick, easy, and free.
Here's what you need to know about personal loan brokers, the potential benefits and drawbacks of using one, and how to find a reputable broker.
1 - 8 of 195
How do personal loan brokers work?
Personal loan brokers work in a similar way to mortgage brokers: they try to help you find a good deal on your loan.
Personal loan brokers can help you with the full range of personal loan products offered by lenders. Whether you are planning a holiday or buying a new car, a broker can assist you with finding a suitable product.
Personal loan brokers search for a loan within their lending panel, which is simply the group of lenders that they deal with. Once you sign up for their services, they will find a product from one of these lenders. Most personal loan brokers offer online applications and loan management, so there is no need to book an appointment or sign and post documents, which can save you time.
Are personal loan brokers worth considering?
Pros
- Convenience. Rather than only comparing the market yourself, a personal loan broker can do some of the legwork, (though you should still try to do at least some of your own research). You'll also have the benefit of a single contact for the total term of your loan.
- They are experts in their field. A broker is usually required to have either a Certificate IV in Finance and Mortgage Broking (FNS40815), a Diploma of Finance and Mortgage Broking Management (FNS50315) or a Bachelor of Business (Financial Planning) making them experts in their field.
- They are obliged by ASIC to protect your interests. Brokers have to have an Australian credit licence under the National Consumer Credit Protection Act 2009 in order to provide credit assistance. This means that they have an obligation to find you the best terms possible for your circumstances.
- They tailor their options. A broker can help to find you the best loan option for your unique circumstances.
- Can help bad credit applicants. Brokers may be particularly useful if you have a poor credit score or trouble meeting the standard lending requirements at larger financial institutions.
- Can help you maintain your score. Using a broker can help you maintain a good credit score by preventing unnecessary applications and potential rejections from multiple lenders. Brokers have a good understanding of different lending requirements of various lenders, so they won’t recommend products that you are likely to be rejected for.
Cons
- A broker's interests may not align with yours. Despite ASIC's measures to protect consumers from being given bad financial advice, brokers still generally work on a commission basis. This means that some brokers may be inclined to direct you towards the lender paying the highest commission, rather than the one that would give you the best deal.
- You may have to pay a broker fee. While most brokers work on commission from lenders, some may charge you for their services. On the plus side, while this will incur a cost to you, it could put your mind at rest that you are not being steered towards a higher charging lender.
- Some lenders don't work with personal loan brokers. Not all lenders choose to work with brokers. This could mean that there are better deals on the market than those that your broker has access to. This is why it's important to also do your own market research.
- Brokers cannot guarantee your rate. Brokers can accurately estimate your rate, fees, etc. for a certain loan, but they cannot guarantee them for you. Lenders still have the right to charge you more based on their view of your financial viability.
How to find a good broker
- Loans offered. Make sure the broker you are considering offers the type of loan that you require.
- Type of interest. Most brokers offer fixed interest loans only.
- Loan conditions. Can you pay the loan out sooner, make additional repayments or redraw on overpaid amounts? Make sure you can access these services without having to pay a fee.
- Lending panel. This is the group of lenders from which your broker will choose a loan. The bigger the panel, the greater the chance of you getting the best deal available.
- How they work. Some brokers operate almost entirely online, whereas others use the more traditional phone, fax and mail. Make sure you’re comfortable with whichever system your broker uses.
- Funding time. Brokers have different speeds at which they are able to approve and fund your loan. If you are in a hurry, an online-based broker should be able to approve your loan faster than a paper-based one.
- Customer service. You will be dealing with the broker for the term of your loan, so make sure you are happy with the level of service they provide. Call them to see how long it takes to get an answer and find out what kind of support they offer.
What to avoid with personal loan brokers
- A small lending panel. The more lenders your broker has access to, the better your chance of getting the best loan available. Make sure your broker compares a large range of options, otherwise you might as well just do it yourself.
- Commissions. There isn’t anything wrong with a broker being paid a commission, just be sure of what the commissions are and how they affect the broker’s recommendations. Less honest brokers might push lenders that pay them higher, rather than the ones that offer the best option for you.
- Fees and charges. Understand the fees and charges that you will have to pay. Ensure that they are all clearly explained to you before you commit to your broker and the loan. It may be worth doing a quick comparison with your current bank, just to get an idea of what you could get without assistance.
Alternatives to personal loan brokers
There are other ways to get a personal loan:
Compare rates yourself
By visiting a range of lender websites, you can get an idea of what different lenders are charging, what their eligibility criteria are and how much you can borrow.
However, this is time consuming and could be confusing for prospective loan customers who aren't sure where to look.
Compare the options in the table above
At Finder, we compare the market so that you don't have to. Compare the rates above from our table of lenders and see some of the best rates currently available in Australia.
For more information on the eligibility criteria involved in the loans, available loan amounts, features and fees of each loan, simply click "More info" to be taken to our product review page. Or, to be securely routed to the lender's website directly to submit an application, simply click "Go to site".
Why compare personal loans with Finder?
Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)
Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest. 
Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.
Have more questions about personal loan brokers?
More resources on Finder
More guides on Finder
-
Personal loan statistics
How much are Aussie's borrowing through personal loans? And is it more expensive now than it was 15 years ago on average?
-
Guarantor personal loans
If you don't quite meet the criteria for a personal loan, applying with a guarantor can help get your application over the line.
-
lendlab Personal Loan
lendlab is an Australian lender that offers personal loans to both good and bad credit applicants. Find out more about lendlab's rates, fees and features.
-
Harmoney Personal Loan
An unsecured personal loan with interest rates tailored to your risk profile.
-
Joint Personal Loans
If you're wanting to bolster your application, buy an asset with your partner or apply for a loan you're not eligible for by yourself, you can consider a joint application personal loan.
-
$10,000 loans in Australia
Are you in need of a larger loan but concerned about your credit history? There still may be options available, no matter your credit history. Read our guide to find out what might be available to you.
-
Apprentice loans
If you're thinking about getting an apprentice loan, explore the possibility of government-sponsored loans as well as loans offered by banks. Find out everything you need to know to compare your options.
-
Easy personal loans
Not all personal loans come with endless documentation. Some lenders specialise in quick and easy application processes.
-
$5,000 loans
How to apply for a $5,000 loan and what you should keep in mind before applying.
-
Loans for casual and part-time workers
Find out your loan options if you're casually employed, or are part time and don't work a full 40-hour week.
Ask a question
Hello, I have been bankrupt since 01/06/2017. I need to borrow $5000 to purchase a car. Can you recommend a broker to assist me. I’ve tried and have found the interest rate to be over 50%. Why do I have to be punished further do to unforeseen circumstances
Hi Luke,
Thank you for getting in touch with Finder.
Some lenders consider applicants if they’ve been discharged from bankruptcy or are currently bankrupt. However, please note that the fees and rates will be considerably higher on bankrupt loans. You will see a table with a list of lenders who consider bankrupt or discharged bankrupt applicants. You may click the name of those with check marks to read further details such as minimum and maximum loan amount, fees, loan term, turnaround time as well as their pros and cons.
When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.
As a friendly reminder, please ensure that you read the Product Disclosure Statement or Terms & Conditions before making a decision and consider whether it is right for you
I hope this helps.
Have a great day!
Cheers,
Jeni
Can you recommend a personal loan broker . I live in Sydney. Thank you.
Hi Kieran,
Thank you for your inquiry.
I’m afraid there is no personal loan broker featured on our website, only a mortgage broker who can take your personal circumstances into account and offer you a range of borrowing options. Personal loan brokers work in a similar way to mortgage brokers, they help you find a good deal on your loan. You can also use ASIC Connect’s Professional Registers for assistance.
I hope this information has helped.
Cheers,
Harold
Was trying to find a personal loan broker in Perth to get me a small loan between $5000 and $10000 to move home and also help improve my credit rating. Not sure how my rating is now but think it is not really bad.
Hello Geoff,
Thank you for your inquiry.
As of this writing, we don’t have a dedicated page yet for personal loan brokers per state however, you can check our list of personal loans of up to $10,000 regardless of your credit rating. Please take time to review the fine print of each product/lender. By doing so, you’ll be able to make a better decision.
Moreover, you may also want to consider getting your credit score first before applying for a loan. This way, you will know your creditworthiness and your chance of getting approved.
Hope this helps.
Cheers,
Jonathan