1. Understand what a mortgage broker does
A mortgage broker acts as a middleman between you and potential lenders. They assess your financial situation, compare loan products from a range of banks and lenders, and recommend options that suit your needs. Importantly, they can often access deals that aren’t available directly to the public.
2. Check their accreditation and licensing
In Australia, mortgage brokers must be licensed and either hold an Australian Credit Licence (ACL) or be authorised as a credit representative under an ACL. They should also be a member of a professional body such as the Mortgage & Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA). These memberships ensure they adhere to ethical and professional standards.
3. Ask about their lender panel
Brokers don’t work with every lender in the market. Ask how many lenders they have on their panel and whether they include major banks, credit unions, and non-bank lenders. A broader panel means more choice for you.
Tip: Be cautious if a broker seems to favour one lender without a clear reason — they may be influenced by commission structures.
4. Understand how they’re paid
Most mortgage brokers in Australia are paid by the lender via a commission, not by you. However, it’s still important to ask:
· Do they charge any fees?
· How are they remunerated?
· Do they receive different commissions from different lenders?
Transparency is key. A trustworthy broker will be upfront about how they’re paid and how that might influence their recommendations.
5. Assess their communication style
You’ll be working closely with your broker, so it’s important they communicate clearly and promptly. Do they explain things in a way you understand? Are they responsive to your questions? A good broker should make you feel informed and supported throughout the process.
6. Read reviews and ask for referrals
Online reviews and testimonials can provide insight into a broker’s reputation. Better yet, ask friends, family, or your real estate agent for recommendations. Personal referrals often lead to brokers who are experienced and trustworthy.
7. Evaluate their experience and specialisation
Some brokers specialise in certain types of loans — such as first home buyers, investors, or self-employed borrowers. Choose someone who understands your specific needs and has a track record of helping clients in similar situations.
8. Ensure they offer ongoing support
A good broker doesn’t disappear after your loan is approved. They should offer ongoing support, such as reviewing your loan periodically to ensure it remains competitive, and helping you refinance if needed.
Final thoughts
Choosing the right mortgage broker is about more than just finding someone who can get you a loan — it’s about finding a partner who understands your goals and works in your best interest. Take your time, ask the right questions, and don’t be afraid to shop around.
With the right broker by your side, you’ll be well on your way to securing a home loan that suits your needs and helps set you up for long-term financial stability.
Book a meeting with us today.