Valentine's Day is once again upon us. And it comes with plenty of conversations about relationships, including the one between brokers and lenders.
The partnership between brokers and lenders is one of the most vital connections in Australia’s ever-evolving loan landscape. Together, the duo relies on each other to find clients, secure approvals, structure loans, guide investment choices and meet settlement timelines.
For this partnership to thrive, both sides must practice patience, appreciate each other’s viewpoints and be prepared to find common ground. When brokers and lenders operate in harmony, they can help co-create better financial outcomes for borrowers, while also reinforcing their own professional bond, and create a relationship where both parties feel confident and supported in achieving shared goals.
In a two-part series, Australian Broker spoke with mortgage industry professionals nationwide about the biggest pain points in the broker-lender dynamic, and their strategies for making the relationship smoother.
The responses have been edited for clarity and length.
Founder and broker at Flint Group
"The lender-broker relationship at its best really is a partnership. Like any relationship, the challenges usually come down to communication and consistency, things like shifting credit appetite, turnaround times (SLAs) or unclear policy interpretation. Brokers are often managing client expectations in real time, so clarity and alignment are key.
"The strongest broker-lender relationships are built the same way any good relationship is, with effort. The grass is always greener where you water it. Brokers who take the time to genuinely get to know their BDMs, communicate early and consistently submit high-quality deals build real trust over time. Respect and professionalism go a long way.
"From the lender's side, transparency and consistency make a huge difference. Brokers value lenders who back their BDMs with strong support, provide clear guidance and keep communication open, especially when policies or conditions shift. One of the biggest opportunities is continued investment in experienced credit teams and ongoing training for assessors, so decisions are consistent, commercially minded and aligned with what’s being communicated through the BDM channel."
Franchise owner and mortgage broker at Adelaide-based Mortgage Choice
"For brokers, the pain points in lender-broker relationships are definitely around assessment and slow turnaround times from some lenders. Brokers can improve the relationship by being really organised with high-quality applications. There are clear check lists provided for brokers to follow, and they should follow them. Knowledge is power and knowing how to present the application to the right lender after the right research is best.
"Lenders need to have a business manager to workshop deals before submission. And they should have some flexibility with policies. If the deal is very strong, but there's one aspect of the submission that doesn't quite meet policy, then try to improve the overall application rather than just declining it. Also, having a clear communication pathway with the lender solicitors who prepare the settlements would be helpful because it would reduce delays.
"Overall, lenders are usually looking for ways to help brokers since this is their business source. Conversely, brokers need to respect and maintain strong relationships with the business managers by being respectful and appreciative of their help."
Mortgage broker at New South Wales-based Home Loan Village
"Having a good relationship with the BDM is certainly key to brokers improving their relationships with lenders. Don't annoy the BDMs with silly things that you can sort easily yourself. And being supportive and kind always goes a long way. People like to help people they like. It is ultimately like any relationship, the more trust you lose, the more likely you are to lose the job. I think it's important to also be real and mention to them things they may not like, such as pricing disparities and SLAs with different lenders. You can very much improve your relationship with a BDM (or anyone) by the conversations you have.
"Lenders can improve their relationships with brokers by adding value to the clients in as many ways as they are able to. The best way that BDMs and banks have improved their relationships with me is when they are doing things proactively to help their client base. Also, it's about doing the job well. This means, when I have an issue that needs sorting, the lender will jump on it quickly and get their hands dirty with me on the frontlines. The vast majority of BDMS that I have come across in my team are like this and they are absolute legends."
Founder and chief executive officer of Melbourne-based brokerage Blank Financial
"The lender-broker relationship is a lot like any long-term partnership: when it's good, it is built on trust, clear communication and a shared goal. When it's not, the cracks usually show pretty quickly and often because one side feels unheard, unappreciated or out of sync with the other.
"One of the biggest pain points is misaligned expectations — essentially skipping the relationship check-in. Brokers can become frustrated by inconsistent credit decisions, shifting policies or turnaround times that change without warning. Lenders, meanwhile, often feel the strain when applications arrive incomplete or structured outside policy, creating friction and delays. Like most relationships under pressure, the issues usually come down to communication rather than intent.
"Brokers can improve the relationship by really getting to know their lenders, understanding their credit appetite, preferences and their non-negotiable, rather than trying to make every deal work at any cost. Thoughtful, well packaged submissions are the equivalent of showing up prepared and on time they build trust quickly. Honest conversations upfront about deal complexity also help brokers move from being seen as transactional to being viewed as trusted long term partners.
"From the lender's side, transparency is the ultimate love language. Clear communication around policy changes, service levels and realistic timeframes helps brokers set expectations and avoid awkward conversations with clients. Consistency in credit decision-making builds confidence, while accessible BDMs and credit teams make the relationship feel collaborative rather than adversarial. No one enjoys being ghosted, especially when a deal is on the line."
Bernard Desmond and his wife Lavinia.
Mortgage broker at New South Wales-based PFS Financial Services
"The biggest disconnect between brokers and lenders is when lenders do not truly understand what brokers value and need most. What brokers need is support and actually backing up words with actions, call-backs in a timely manner and good communication. If a lender says we're going to get something by the close of the business day, we expect the news by close of business. Conversely, if you need more time, that's okay. Just communicate that. If there's a problem or a roadblock with a file, take the time to read the email, versus just forwarding.
"Also, lenders should add value. Show us how to get more deals done, or how to get them done easier. This is done via showing us niche policies, loopholes, special offers or enhanced-service offerings, etc. And if there's a disaster, don't run from it. Some of the most solid relationships are formed when it all hits the fan. For me, seeing someone stand up and fight for my client’s deal and my business is everything. Even if we lose the battle, seeing that effort is everything. I am riding with that BDM always and forever.
"For brokers, we need to understand that you need to properly support the lender. You need to earn the right to ask for more. That comes from submitting quality and well-explained deals that are complete, having realistic time expectations, giving regular deals to the lender and approaching problems with more sugar and less vinegar."
Founder and managing director at Sydney-based non-bank lender FinStreet
"If a lender-broker relationship had a status, many would say 'it's complicated.' It's built on trust and shared goals, but tested by expectations, pressure and timing. One of the biggest challenges is misaligned expectations. Brokers operate in real time with clients, while lenders operate within structured credit frameworks, governance and risk settings. When communication is unclear or turnaround times shift without context, brokers wear that friction directly with clients.
"Another pain point is inconsistency, whether that’s policy interpretation, service levels or outcomes between similar deals. Over time, this erodes confidence and makes it harder for brokers to give clients certainty.
"Brokers play a critical role in setting the tone of the relationship. Clear, accurate submissions and realistic client expectations go a long way. Understanding lender appetite, credit philosophy and constraints — not just policy wording — helps reduce friction and improves outcomes for all parties. Strong relationships are built when brokers think beyond individual transactions and engage lenders as long-term partners, rather than purely as deal-by-deal solutions.
"From the lender's perspective, transparency is key. Clear communication around policy intent, service capacity and changes builds trust, even when answers aren’t always positive. Consistency in credit decisioning and proactive updates during the assessment process also make a significant difference. Ultimately, lenders who invest in education, accessibility and open dialogue with brokers tend to build more resilient, mutually-beneficial partnerships, especially in more complex or volatile market conditions."
