Frequently asked questions

A mortgage broker is a liaison between clients and lending institutions to achieve a desired financial product such as a residential or commercial property loan.

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

A good broker works with you to understand your needs and goals.

A good broker works with you to:

• Understand your needs and goals
• Work out what you can afford to borrow
• Find options to suit your situation
• Explain how each loan works and what it costs (for example, interest rate, features and fees)
• Apply for a loan and manage the process through to settlement

Before you see a broker, think about what matters most to you in a home loan. Do you simply want the lowest-cost loan? Do you want specific features, such as being able to make extra repayments? Thinking about this beforehand will make the conversation with your broker easier. Make a list of your:

• ‘must-haves’ (can’t do without)
• ‘nice-to-haves’ (could do without)

Check if the broker is licensed to ensure they are legally compliant to give you credit (loan) advice.

Search the following lists on ASIC Connect’s Professional Registers:

• Credit Representative
• Credit Licensee

To search, choose the list name in the ‘Select Register’ drop-down menu.

Often, lenders pay the broker a fee or commission for selling their products, so you don’t pay the broker anything.

Some brokers get paid a standard fee regardless of what loan they recommend. Other brokers get a higher fee for offering certain loans.

Sometimes, a broker will charge you a fee directly – instead of, or as well as, the lender’s commission.