Why the First Meeting Decides Everything

Mortgage brokers write the majority of new home loans in Australia, and the service is usually free to you. But "free" makes it easy to engage carelessly — and the broker you choose determines which slice of the lending market you ever see. Ask these twelve questions in the first conversation.

Licensing and Standing

1. What is your credit licence or credit representative number? Every legitimate broker operates under an Australian Credit Licence (ACL) or as a Credit Representative (CRN) under one. The number is on their website footer and credit guide by law; verify it on ASIC''s professional registers. No number, no engagement. 2. Are you a member of the MFAA or FBAA? Both industry bodies require professional development and codes of conduct. Membership is the industry norm — its absence deserves an explanation. 3. Who owns your brokerage, and does any lender have a stake? Some brokerages and aggregators are partly owned by banks. It does not disqualify them, but you deserve to know whose shelf you are shopping from.

The Panel and the Process

4. How many lenders are on your panel — and how many do you regularly use? A 40-lender panel means little if 80% of loans go to three lenders. Both numbers are revealing. 5. Will you show me the comparison, not just the recommendation? Good brokers show their working: two or three options with rates, fees, and reasoning. A single take-it-or-leave-it recommendation is a red flag. 6. What is your experience with borrowers like me? Self-employed? Visa holder? Guarantor structure? Ask for recent, specific examples in your scenario — generalists can cost specialists'' clients real money. 7. Who handles my file after application — you, or a processing team? Larger brokerages hand files to back-office teams. Neither model is wrong; know which you are getting and who to call when something stalls.

Money and Incentives

8. What will you be paid for my loan, and by whom? Commission disclosure is mandatory. Fluency here signals professionalism. 9. Do you charge me any fee — now, or if I repay early? Clawback-recovery clauses exist at some brokerages. Get the answer in writing. 10. Will you review my rate after settlement, and how often? Trail commission pays brokers while your loan lives — an ongoing review commitment is the fair exchange. Ask what their review cycle actually is.

Judgement Calls

11. What could go wrong with my application? Like any good adviser, a strong broker identifies risks — valuation shortfalls, serviceability buffers, policy quirks — before lodging. "Nothing, you''re a certainty" is salesmanship. 12. Why should I use you instead of going directly to my bank? The honest answers: access to many lenders'' policies, the Best Interests Duty (which bank staff do not owe you), and application strategy. A broker who answers with substance rather than slogans is worth your file.

The Bottom Line

You are choosing a professional who will shape the largest debt of your life and be paid well for it — interview them like it matters. Two brokers, the twelve questions, and a written comparison will put you ahead of the vast majority of borrowers.

This article is general information only — not credit assistance, credit advice or financial advice. Consider your own circumstances and verify credentials on ASIC''s registers before engaging any broker.