What to ask a mortgage broker before you sign anything

A good mortgage broker can save you a lot of time, and can be the difference between being ready and being too late. But you are trusting them with a big financial decision, so it is worth asking a few questions first.

Take this list to a first meeting. A good broker will be happy to answer all of it.

About them

Are you licensed, and under whose licence? Mortgage brokers need to hold an Australian credit licence, or work as a representative of someone who does. Ask for the details, and check them on ASIC's registers.

How long have you been doing this, and who do you mostly help? Someone who mainly works with investors may approach a first home buyer differently. If you are self-employed, have a complicated income or are buying through a trust, ask whether they deal with that regularly.

Do you know this region? The grants, concessions and duty are different on each side of the border, and you want the budget worked out for the right state.

Who will I actually be dealing with? And how quickly will they get back to you when you are up against a contract date?

How they are paid

How do you get paid on my loan? Most brokers are paid commission by the lender. Ask what they would receive and whether it varies between lenders. Moneysmart has a helpful explanation.

Do you charge me a fee as well? Some do, and it should be clear before you begin.

Commission does not make a broker a bad choice. Under the law, brokers have a best interests duty, and where there is a conflict they must put your interests first. But it is fair to ask, and the answer tells you a lot about how open they will be with you.

How they choose your loan

How many lenders do you actually use? A panel may list dozens. Ask which ones they have used most in the last year, and why.

Why this loan over the others? Ask them to explain the recommendation in plain English, and show you at least a couple of alternatives. You should understand why this one suits you, including the features you asked for.

What will the loan cost me overall? Ask about the interest rate, the comparison rate, and every fee. Also ask what happens when any discount or introductory period ends.

How does this fit how I want to live? Ask about an offset account, redraw, extra repayments, and fixed or variable. A slightly lower rate may not help if the loan does not suit what you need.

How much you can borrow

What is my real borrowing range, and what would change it? Ask how much a different lender might lend, and what is driving the difference. Credit cards, HECS, car loans and childcare costs can all matter.

Can I comfortably afford that? The most you can borrow and the most you should borrow are different numbers. Ask to see the repayments at your likely rate, and at a higher one.

What deposit do I need, and will I pay lenders mortgage insurance? Ask what it would cost, and whether it can be avoided.

Do I qualify for any government help? If you are a first home buyer, ask about the Australian Government 5% Deposit Scheme, and whether they work with participating lenders. Ask about state grants and concessions, and whether they are working from current rules. Our first home buyer's guide has more on this.

About pre-approval

How firm is my pre-approval? It is not a guarantee, and the conditions matter. Ask what could cause it to fall over.

How long does it last, and can it be renewed? You do not want it to expire halfway through your search.

Does it fit what I am looking at? Some lenders are cautious about certain property. Ask about small apartments, older beachfront towers, properties with holiday letting arrangements, rural blocks, and anything in a mapped hazard area. Ask before you fall in love, not after.

Is the valuation likely to be a problem? If the bank values the home below the price, you may have to make up the gap.

When you find the home

How long does formal approval really take right now? Your finance date has to work, and you do not want to discover otherwise after you have signed.

Can I bid at auction with this approval? You buy unconditionally at auction, so ask what has to be done first. Our guide on bidding at auction explains why this matters.

What do you need from me, and when? Having your documents ready early makes everything easier.

If you are investing

Have you thought about how this loan fits the next purchase? The way a loan is set up can affect what you are able to do later. Ask about cross-collateralisation, interest-only periods and how your borrowing capacity changes after this purchase.

Are you up to date with the tax changes? A broker is not your accountant, and should not be giving you tax advice. But they should know that the 2026 changes to negative gearing and capital gains tax exist, and suggest you get advice before you settle on a structure.

A few things to listen for

You are looking for someone who asks plenty about you before talking about products, explains things without jargon, and is willing to tell you when something is not a good idea. Be careful if someone rushes you, cannot explain why they chose a lender, or promises an approval before seeing your paperwork.

If something goes wrong, ask the broker how they handle complaints. They should have a process, and an external one through the Australian Financial Complaints Authority.

If you are working out what your budget really buys here, we are happy to talk it through alongside your broker. Book a 30-minute call, with no obligation at all.