5 Key Questions to Ask Your Mortgage Broker Before You Commit

Home Loans

6 Oct

Refinancing, buying or refinancing a home is one of the biggest financial decisions most people make. Before you commit to a mortgage or to working with a broker, asking the right questions saves you time, money and stress. I’m a mortgage broker and not a financial adviser, so I’ll explain the practical, loan-focused questions you should ask me or any broker you’re considering. These questions help you check competence, transparency and whether the broker truly has your best interests at heart.

1. What experience and credentials do you have?

Ask how long the broker has worked in the industry, the types of loans they commonly arrange and whether they hold the required licences or accreditations. A licensed broker must comply with rules under the National Credit Act and related regulations, so confirmation of licensing and relevant industry experience helps you judge capability and fit.

2. Who pays you and what will it cost me?

Brokers can be paid by lenders through commissions, sometimes by clients via fees, or a combination depending on the arrangement. Ask explicitly whether you will be charged an upfront fee, any ongoing fees, and whether the broker receives lender commissions or incentives for placing business with particular lenders. Brokers must disclose fees and commissions so you can weigh any potential conflict of interest.

3. How many lenders do you compare and which lenders are on your panel?

A good broker should explain how many and which lenders they can access. Some brokers have wide panels and can compare many lenders, while others are aligned with fewer providers or a single aggregator. Knowing the panel breadth tells you whether options are genuinely competitive and whether the broker can find products that suit your situation. It also helps you understand if a particular lender recommendation comes from choice or constraint.

4. How will you find the loan that is best for me - not just the cheapest?

Ask the broker to walk you through their process for understanding your goals, financial position and risk tolerance. The industry has a Best Interests Duty that requires brokers to prioritise a client’s interests when providing credit assistance. You should expect clear, documented reasons for any recommendation and an explanation of trade-offs between rate, features, fees and flexibility.

5. What could cause my application to be declined and how will you manage it?

A competent broker will explain the common reasons lenders decline loans - such as serviceability, unstable income, large debts, or missing documentation - and the steps they will take to reduce those risks. This includes pre-checking your documents, suggesting changes to improve your position, and matching you to lenders whose credit policies fit your circumstances. Knowing this up front helps avoid surprises and wasted time.

Conclusion

These five questions focus on transparency, capability and alignment with your needs. As a mortgage broker I can compare loans and guide the application process, but I am not a financial adviser and I won’t provide broader financial planning advice. Use the answers you get to judge whether the broker explains things clearly, discloses fees and incentives, and can show a method for finding the right loan for you. Good answers should make you feel informed and confident before you commit.