Mortgage Advice · May 2026
How to Choose a Mortgage Broker — 8 Questions That Separate Good From Great
Brokers now write more than 70% of all new home loans in Australia. That means the broker you choose has more influence over your rate, loan structure, and long-term financial position than almost any other decision in the home-buying process. Here's exactly what to look for — and what should make you walk away.
What Every Broker Must Have: Qualifications & Licensing
In Australia, mortgage brokers must hold an Australian Credit Licence (ACL) issued by ASIC, or be a credit representative of an ACL holder (which is the most common structure for brokers operating under an aggregator). Before working with any broker, verify their ACL or credit representative number at moneysmart.gov.au/find-a-financial-adviser or the ASIC Connect register.
Additionally, most reputable brokers hold membership in the Mortgage & Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA). These memberships require ongoing CPD (continuing professional development), adherence to a code of conduct, and access to a complaints resolution process. Membership isn't mandatory, but it's a marker of professional standards.
The Best Interests Duty: How the Law Protects You Since 2021
Since 1 January 2021, all mortgage brokers in Australia are legally required to act in the best interests of the borrower — not in their own financial interest or the lender's. This means the broker must prioritise the loan and structure that best serves your situation, even if a different product would pay them higher commission. This duty is enforceable by ASIC and represents a significant consumer protection strengthened after the Royal Commission into banking and financial services.
Practically: if a broker recommends the lender that pays the highest trail commission rather than the lender that genuinely fits your needs, that is a breach of their legal duty. You have recourse through AFCA (Australian Financial Complaints Authority) if you believe your broker acted against your interests.
The 8 Questions to Ask Any Broker
1. How many lenders are on your panel? A broker with 15 lenders on their panel is structurally different from one with 70. A small panel isn't necessarily bad if the broker specialises in a narrow niche — but for most borrowers, a wider panel means more genuine competition and a higher chance of finding the right fit. Ask for the list.
2. What is your aggregator, and does it restrict which lenders you can submit to? Most brokers operate through an aggregator (e.g., Connective, FAST, Outsource Financial). Some aggregators have preferred lenders or volume incentives. This doesn't mean the broker can't act in your best interest, but transparency here is important.
3. Will you disclose your upfront commission and trail commission in writing? Under responsible lending obligations and the best interests duty, brokers must disclose their remuneration in the credit proposal. A broker who is reluctant to put this in writing or explain it clearly is a yellow flag.
4. Do you specialise in situations like mine? A broker who mostly writes simple refinances may not be the best choice for a complex self-employed application or a first home buyer using the FHGS and FHSS simultaneously. Ask about their experience with your specific situation.
5. How many applications did you settle in the last 12 months, and what was your average turnaround time? Settlement volume and turnaround times indicate whether the broker is genuinely active and has current lender relationships. A broker settling 5 loans per year is unlikely to have the same lender access and negotiating ability as one settling 60.
6. What happens after settlement — do you review my loan every year? The best brokers provide an annual rate review, alert you when better deals become available, and act as a proactive advocate. Some brokers are transactional — they settle the loan and disappear. Others build long-term relationships. Know which one you're getting.
7. Can I speak with a past client? Most quality brokers can provide references or have Google/social media reviews you can check. A broker who can't point to any verifiable client feedback is worth approaching with caution.
8. Who does the work — you personally, or a support team I may not meet? Some brokerages use a "face" broker for the initial conversation and then hand the application to a junior processor. Understand who is actually managing your application from lodgement through to settlement.
5 Red Flags That Should Make You Walk Away
1. Pressure to commit before seeing the loan comparison. A broker who pushes you to sign authority documents before showing you a comparison of multiple lenders is not acting in your best interests. You should always see the shortlist.
2. "I only use one or two lenders." If a broker consistently directs clients to the same lender regardless of situation, that's a sign of either a limited panel or a commission-driven preference — not genuine best-interests advice.
3. Reluctance to explain the comparison rate. The advertised rate and the comparison rate (which includes fees) can differ significantly. If your broker can't explain this difference or dismisses it, that's a problem.
4. Cannot explain why one lender over another. Every recommendation should come with a clear explanation of why this lender suits your specific situation — based on your income structure, LVR, timeline, or goals. "They're good" is not an answer.
5. Asks you to overstate income or understate expenses on the application. This is fraud. Walk away immediately and consider reporting to ASIC.
Broker vs Bank: The Practical Difference
Going directly to a bank means comparing one institution's products. A bank relationship manager is paid to sell that bank's products — not to find you the best deal in the market. A mortgage broker with a wide panel can compare rates, features, and policy across 70+ lenders in one conversation. For most borrowers, that breadth produces a meaningfully better outcome — both at the time of purchase and over the life of the loan.
About the Author
William Zhu
Director, Bridge Finance. 8 years of mortgage broking + 5 years in construction. $600M+ settled. Access to 70+ lenders. MFAA member.
Book Free Consultation →Ready to take the next step?
Book a free 30-minute consultation with William. No fees, no obligation — just expert advice tailored to your situation.
© 2026 Bridge.Finance Pty Ltd ATF Zhu Family Trust. Credit Representative 567817 of Australian Credit Licence 384704. MFAA Member. AFCA Member.
Get in touch
Ready to take the next step?
Whether you're just starting your property search or ready to apply, we'd love to help. Reach out for a free, no-obligation chat and find out what's possible for your situation.
Follow along on TikTok (@williamzhufinance) for property tips, market insights, and honest mortgage advice.
Address
217 Burwood Road, Burwood NSW 2134, Australia