Choosing the right mortgage is one of the biggest financial decisions you’ll ever make. While the right broker can make your property purchase experience much easier, not all of them deliver the same level or quality of service. Knowing the right questions to ask a mortgage broker upfront can be the difference between a loan that serves you well for decades and one that costs you thousands more than it should.
Brokers now arrange 75% of all new residential home loans in Australia, so chances are, you’re already thinking about using one. But with over 22,000 brokers operating in the market, how do you know yours is the right fit?
Quick Insights
- A good mortgage broker is licensed, accredited by MFAA or FBAA, and holds an Australian Credit Licence (ACL) or works under one
- Brokers are typically paid by lenders through upfront and trail commissions
- You’re never obligated to take a broker’s recommendation
- The right questions to ask a mortgage broker cover credentials, lender access, loan rationale, fees, features, and what happens after settlement
1. Are You Licensed and Accredited?
This one’s non-negotiable. Every mortgage broker operating legally in Australia must hold or be authorised under an Australian Credit Licence (ACL) issued by ASIC. You can verify this in about 30 seconds on the ASIC Professional Registers.
Beyond that, look for membership with either the Mortgage and Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA). Both bodies enforce continuing education requirements and professional conduct standards.
Green flag: Licence details are offered upfront without you having to ask. The broker is an MFAA or FBAA member.
Red flag: Hesitation to share their ACL number, or no professional association membership.
2. How Many Lenders Are on Your Panel?
This is one of the most important questions to ask a mortgage broker, because it directly affects how much choice you get.
A broker with a wide lender panel can compare products across the major banks, smaller lenders, and specialist options. A broker with access to only a handful of lenders is more likely to be steering you toward what’s available to them, not what’s best for you.
There’s no magic figure, but 20–30+ lenders is a solid benchmark. More importantly, ask whether their panel includes non-bank lenders and specialist lenders, not just the big four.
Green flag: Access to 25+ lenders, including non-banks, and they can tell you which ones they’ve used recently for situations like yours.
Red flag: A small panel with mostly one or two major banks, or vague answers about who they work with.
3. How Are You Paid, and Does Any Lender Pay You More?
Brokers in Australia are generally paid by lenders, not borrowers. Once your loan settles, the lender pays your broker an upfront commission (typically around $600–$700 per $100,000 borrowed) and an ongoing trail commission of around 0.10%–0.20% per year for the life of the loan.
That means, for most borrowers, using a Brisbane mortgage broker costs you nothing out of pocket. But it’s still worth understanding how the commission structure works so you know your broker is recommending the right loan for you, not the one that pays them the most.
Since January 2021, all brokers have been legally bound by ASIC’s Best Interests Duty, which requires them to prioritise your interests over their own. Still, there’s nothing wrong with asking.
Green flag: Full transparency about upfront and trail commissions, confirmation that commissions are similar across their lender panel, and they mention the Best Interests Duty.
Red flag: Evasiveness about how they’re paid, or an inability to explain whether any lender offers them incentives or bonuses.
4. Why This Loan and Why This Lender?
A good broker doesn’t just hand you a loan product. They explain why it’s the right fit for your circumstances. If they’ve recommended a fixed rate, they should be able to explain why it suits your situation. The same thing applies if they’re suggesting a variable loan.
This question also reveals how well they’ve listened to you. Before recommending anything, a thorough broker will ask about your income, expenses, employment type, future plans, and risk tolerance.
Green flag: A clear, personalised rationale. The broker can explain how the loan features match your specific goals, whether that’s buying your first home, growing an investment portfolio, or refinancing to reduce your repayments.
Red flag: A one-size-fits-all recommendation with no explanation. Or worse, a product pitched before they’ve understood your financial situation.
5. What Loan Features Are Included and What Will I Actually Use?
Not all home loans are the same, even at the same interest rate. Features like offset accounts, redraw facilities, extra repayment options, and the ability to split between fixed and variable can make a significant difference to the total cost of your loan over time.
But here’s the catch: more features can mean higher fees or a higher rate. So the right question to ask your mortgage broker isn’t just “what features does this loan have?” it’s “which of these features am I actually likely to use?”
Key things to ask about:
- Offset account (reduces interest; great if you keep savings)
- Redraw facility (access extra repayments you’ve made)
- Ability to make additional repayments (especially important if you’re on a fixed rate)
- Split loan option (part fixed, part variable for flexibility)
- Portability (can the loan move with you if you sell and buy again?)
Green flag: The broker explains features in plain language and gives an honest view of which ones are worth paying for based on your habits.
Red flag: Features are listed without context, or the broker pushes loan features that drive up costs without justification.
6. What Rate Can I Realistically Qualify For?
The rate you see advertised is rarely the rate you’ll get, and a good broker will set that expectation early. Your interest rate will depend on your credit profile, deposit size, loan-to-value ratio (LVR), employment type, and the specific lender’s current appetite.
Ask your broker what rate range you’re likely to qualify for before applying. This protects you from surprises at the approval stage and helps you understand how your borrowing situation compares to the market.
It’s also worth asking whether there are any unadvertised rates or special offers available. Brokers sometimes have access to rates not publicly listed.
Green flag: A realistic rate range based on your actual financial situation, with an explanation of what’s influencing it.
Red flag: A headline rate thrown out before the broker knows anything about your finances.
7. Are There Any Fees I Should Know About?
“The broker is free” is mostly true, but mostly isn’t always. While you won’t typically pay a broker fee on a standard residential loan, there are other costs worth understanding before you commit.
Ask specifically about:
- Application or establishment fees from the lender
- Lender’s mortgage insurance (LMI) if your deposit is under 20%
- Ongoing annual fees
- Discharge or break fees if you exit the loan early (especially relevant on fixed rates)
- Any broker fee for complex or specialised scenarios
Your broker is legally required to disclose all fees and commissions in a Credit Proposal Disclosure Document. Don’t sign without reading it.
Green flag: Full breakdown of all costs (lender fees, third-party costs, and any broker fees) before you apply.
Red flag: Fee questions brushed off with “don’t worry, brokers are free.” There’s more to the cost of a loan than a broker’s fee.
8. How Long Will the Application Process Take?
Timing matters, especially if you’ve found a property and have a cooling-off period to work around. A good broker should give you a realistic, honest timeline based on your circumstances and their current workload.
The process from application to formal approval typically takes anywhere from a few days (for straightforward applications) to several weeks (for more complex applications, such as self-employed income or investment structures). Settlement after approval usually takes an additional 30–90 days, depending on your contract.
Ask who manages your application once it’s submitted. Is it the broker directly, or a support team? And how will they keep you updated?
Green flag: A realistic timeline with clear milestones, a named point of contact, and a communication plan.
Red flag: Vague assurances that “it won’t take long” without any specifics.
9. What Happens After My Loan Settles?
The best brokers don’t disappear after settlement. A good ongoing relationship means your broker checks in periodically, particularly when your fixed rate expires, when you’re considering refinancing, or when your circumstances change.
Ask whether they offer an annual home loan health check, and how they’ll let you know if a better deal becomes available. This matters because the loan that’s right for you today may not be the most competitive option in two or three years.
Green flag: A clear description of their after-settlement service, including how often they’ll review your loan and how they handle refinance conversations.
Red flag: No mention of ongoing support, or “our job is done at settlement.”
10. Have You Helped Clients in My Situation Before?
This is your chance to check whether the broker has experience with your specific circumstances. A first-home buyer mortgage broker scenario is very different from a seasoned investor adding to a portfolio. Self-employed income has different documentation requirements from PAYG employment. Refinancing involves a different process entirely.
It’s also worth asking whether they’re familiar with Queensland-specific grants and incentives, if that applies to you. A locally-based Brisbane mortgage broker will have that knowledge without you having to guide them.
Green flag: Specific examples of similar client scenarios they’ve navigated. Comfort with your income type and purchase goals.
Red flag: Generic answers that could apply to any borrower, or unfamiliarity with programs or requirements relevant to your situation.
Ready to Speak With a Brisbane Mortgage Broker?
At Woodrow Finance, we work with clients across Brisbane and South East Queensland, from first home buyers finding their feet to investors expanding their portfolios and homeowners looking to refinance to a better deal. Our role is to make the process clear, straightforward, and 100% suited to your circumstances.
If you’d like to talk through your situation with a local broker who knows the Brisbane market, get in touch with the team at Woodrow Finance. We’re happy to answer all of the above and anything else on your mind.
FAQs
How many lenders should a good broker have on their panel?
There’s no official minimum, but 20–30+ lenders is a reasonable expectation for a well-connected broker. More importantly, the panel should include a mix of major banks, smaller lenders, and non-bank lenders, so your broker can compare options rather than defaulting to a familiar name. Breadth matters, but so does depth: ask whether they’ve placed loans with those lenders recently, and whether they’ve done so for situations like yours.
Are brokers really free?
For most borrowers on standard residential loans, yes, you don’t pay the broker directly. They’re paid by the lender through upfront and trail commissions after your loan settles.
These commissions come from the lender’s margin and don’t increase your interest rate. That said, some brokers charge fees for complex or specialist scenarios, which must be disclosed upfront.
Do I have to take the broker's recommendation?
Absolutely not. A mortgage broker’s job is to present you with suitable options and explain the rationale, not to make the decision for you. You can ask for alternative options, request more time to think, or decline a recommendation entirely.
Under ASIC’s Best Interests Duty, your broker is legally obligated to prioritise your interests, which includes respecting your right to ask questions and consider your options before committing. For more on how mortgage brokers work, or to understand the difference between comparing a broker and a bank, take a look at our guides.