Questions to ask a mortgage broker

How brokers are paid

Moneysmart says lenders generally pay mortgage brokers a commission for distributing their products, so you do not pay them directly. The commission is typically a percentage of the loan amount, with an upfront payment and an ongoing payment, and brokers must disclose the commissions they may receive. Some brokers charge you a fee directly. Any fee must be set out in a written quote that you must sign before the broker can provide services or request payment.

Mortgage brokers must act in your best interests when suggesting a loan for you.

Before the first meeting

• Check the broker has a licence to give credit (loan) advice, or is a representative of a licensee. Search ASIC's Professional Registers for "Credit Representative" and "Credit Licensee" (Moneysmart's guidance).
• Write down your goals: price range, deposit, whether you want an offset, fixed or variable.
• Know roughly where rates sit so you can test the broker's suggestions. As at 2 Nov 2026, in RateSonar's data the middle advertised standard variable owner-occupier rate is 6.74%, the lowest is 5.69% (for borrowers borrowing up to 90% of the property value), and the four major banks' lowest standard variable loans run from 6.34% to 6.79%. See home loan rates.

Questions to ask

About lenders

1. Do you offer loans from a range of lenders? Which ones? (Moneysmart suggests asking which lenders they work with and which they cannot access.)
2. Do you work with the smaller banks, credit unions and non-bank lenders as well as the major banks?
3. Why is this lender in my best interests, and which others did you consider?
4. Can you show me a couple more options, including one with the lowest cost?

About pay

1. How are you paid? Does the amount differ between lenders?
2. Will I pay you a fee as well? Please put it in writing.
3. Do you receive an ongoing payment, and what happens to it if I refinance away?

About the loan

1. What are the advertised rate and the comparison rate? (comparison rate explained)
2. What fees and features come with the loan: application, annual or package fee, offset, redraw, extra repayments?
3. What is the lender's LMI threshold, and how can I avoid LMI? (what LVR means)
4. Is the rate fixed or variable, and what are the break costs if I fix?
5. What happens when a fixed rate ends? (guide)

About your own protection

1. If the lender changes its rate later, will you help me ask for a better deal?
2. What happens if my application is declined or the valuation is low?
3. Who do I contact with a complaint? (Brokers and lenders should have an internal process, and the Australian Financial Complaints Authority provides free, independent dispute resolution.)

Check the answers

Compare the broker's suggestions with the market:

• Open compare rates and put the suggested lender next to two others.
• Check the lender's own page, such as Commonwealth Bank, Westpac, NAB or ANZ, to see what it advertises directly. Brokers sometimes have access to rates that are not advertised, so a broker's rate being lower than the website does not by itself mean anything is wrong. A rate that is higher than the advertised direct rate deserves a question.
• Ask for the comparison rate in writing.

On a $600,000 loan over 30 years, a quarter of a percentage point is worth about $99 a month, by RateSonar's arithmetic with the rate held constant, so a small difference between offers is worth a question.