How to choose a mortgage broker
A mortgage broker compares home loans across many lenders and manages the application for you. A good one saves you legwork and can find a sharper rate than going lender-direct.
What they do
They assess your borrowing capacity, compare loans across a panel of lenders, recommend options and handle the paperwork through to settlement. They must act under an Australian Credit Licence (ACL) or as a credit representative.
How they’re paid
Brokers are usually paid a commission by the lender, not a fee by you. Since 2021 they owe you a legal “best interests duty”. Ask how they’re paid and whether any lender pays them more — it should never steer the recommendation.
Red flags to watch for
- Isn’t licensed — no ACL or credit-representative number you can check on ASIC.
- Only ever recommends one lender, or the one that pays the most.
- Charges a fee without disclosing the commissions they also receive.
- Rushes you to sign, or inflates your income/expenses to get an approval.
Questions to ask before you commit
- What’s your ACL or credit-representative number?
- How many lenders are on your panel, and how did you pick my shortlist?
- How are you paid — commission, clawback, any fee to me?
- How does your best-interests duty apply to what you’ve recommended?
How to verify them
Mortgage brokers must be authorised under the NCCP Act. Check their ACL or credit-representative status on ASIC Connect’s professional registers — profiles here link to ASIC.
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Every listing is checked against the official register — none paying for placement.
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