Working with a mortgage broker

How this lending option works

A mortgage broker should do more than collect documents and quote rates. The work begins with understanding the purpose of the loan, your priorities and constraints, then testing those requirements against lender policy, pricing, borrowing capacity, valuation approach and loan structure before an application is lodged.

One point of contact
Research across available lenders
Support through application and settlement

What a thorough broker process should include

The broker should verify your income, expenses, liabilities, deposit and objectives; explain the available structures and trade-offs; compare suitable lenders from their panel; document why the recommendation is in your interests; and manage the selected application through settlement.

Questions worth asking your broker

Ask which lenders were considered, why the recommended option is suitable, whether a lower-cost option was available, what fees and commissions apply, what could cause the application to fail, and how the structure affects future plans. Clear answers matter more than a long product list.

Why is this lender and structure suitable for my plans?
What alternatives were considered and what are the trade-offs?
What costs, conditions and risks should I understand before applying?

What the broker cannot control

The lender makes the credit decision and controls its valuation, verification and processing. A broker cannot guarantee approval, valuation or timing. Good broking reduces avoidable uncertainty by checking policy, documents and risks before submission and responding quickly when the lender raises questions.

Common questions

Does a broker compare every lender in Australia?

No. Brokers compare lenders available through their accredited panel. Ask which lenders were considered and whether an important lender or product sits outside that panel.

Who pays the mortgage broker?

Lenders generally pay upfront and trail commission after settlement. Any commission and any fee payable by you should be disclosed before you proceed.

Can I change brokers after starting an application?

You can, but first understand the application status, documents already lodged and any agreed fees. Avoid duplicate applications or credit enquiries without a clear reason.