Questions to ask a mortgage broker
By Nathan Ellis · Updated 2026-07-12
The most important questions to ask a mortgage broker are how they are paid, which lenders they compare, why the loan they recommend is in your best interests, and what it will cost in total. Moneysmart suggests asking all 4, and a good broker answers them plainly and in writing.
Several of the answers are not optional. By law, a mortgage broker must give you a credit guide, a proposal document when they recommend a loan, and a written quote before charging any fee. Knowing what those documents must contain lets you check the broker’s answers against them.
12 questions to ask a mortgage broker
These are the 12 questions worth asking. Questions 1 to 5 help you choose a broker, 6 to 10 test the loan they recommend, and 11 and 12 cover the process.
- Are you licensed, and what is your credit licence or credit representative number?
- Which lenders are on your panel, and which kinds of lender can you not access?
- How are you paid, and does your commission differ between lenders?
- Will I pay you a fee at any point?
- Have you arranged loans for people in my situation, such as first home buyers, self-employed borrowers or investors?
- Why is this loan in my best interests, and what other options did you consider?
- What is the comparison rate, and what fees will I pay on this loan?
- What is the lowest-cost home loan option, and how do features such as an offset account or redraw change the cost?
- How much deposit do I need, and will I pay lenders mortgage insurance?
- Should I choose fixed, variable or a split, and what happens when a fixed rate ends?
- How much can I borrow, what documents do you need, and how long will approval take?
- Who will I deal with, and what happens after settlement?
Write your questions down before the first meeting. A broker cannot guarantee approval, which is the lender’s decision, so ask what could stop your application and how to fix it first.
Moneysmart’s own list covers questions 2, 3, 6, 7, 8 and 9, plus how the loan’s features work (Moneysmart).
Questions about the broker: licence, panel and pay
Start with the questions that tell you who you are dealing with. A mortgage broker must hold an Australian credit licence or be a credit representative of a licensee, and you can check either on ASIC’s register. Our guide shows how to check a mortgage broker’s licence in 5 steps. Membership of the Mortgage and Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA) is a supporting signal, not a substitute for the licence.
Ask about the lender’s panel. No broker can access every lender, so the useful question is which lenders the broker cannot use, not how many it can. Moneysmart suggests asking exactly that.
Ask how they are paid. Lenders usually pay brokers an upfront commission and an ongoing trail commission, and a broker may also charge you a fee. Asking whether the commission differs between lenders is fair, because commission is a conflict of interest the law requires brokers to manage. Our guide to how mortgage brokers get paid sets out the typical rates.
Questions to ask your mortgage broker about the loan
The most important question to ask a mortgage broker about a loan is why it is in your best interests. Since 1 January 2021, a mortgage broker must act in your best interests and put your interests first when there is a conflict (National Consumer Credit Protection Act, sections 158LA and 158LB). A good answer is tied to your situation: your deposit, income, the features you asked for, and the total cost.
Moneysmart says a broker should present more than one option, and suggests asking for a couple more, including the lowest-cost one. Compare them on the comparison rate, which includes the interest rate and most fees, not the headline rate alone.
Ask what the interest rate will be after any fixed or introductory period ends, and whether you will pay lenders mortgage insurance. Both can change the cost of the home loan more than a small rate difference. If you are refinancing, also ask about break costs and discharge fees on your current loan.
What a broker must tell you in writing
A mortgage broker must give you up to 4 documents under the National Consumer Credit Protection Act, and several of your questions are answered in them (ASIC INFO 146):
| Your question | Where the answer must appear |
|---|---|
| Are you licensed? | Credit guide: name, contact details and credit licence or representative number |
| Which lenders do you use most? | Credit guide: the 6 lenders the broker does the most business with |
| How are you paid? | Credit guide: fees and commissions that may be payable |
| What will I pay you? | Quote: required before the broker helps you if they charge a fee, and you must sign it |
| What will this loan cost, and what will you earn? | Proposal document: fees on the loan and a reasonable estimate of the broker’s commission |
| Why is this loan not unsuitable for me? | Preliminary assessment: free on request |
| Who do I complain to? | Credit guide: complaint process and AFCA contact details |
If the broker’s spoken answer differs from what the documents say, ask why.
Red flags in a broker’s answers
Some answers should make you pause before you hand over documents:
| Red flag | Why it matters |
|---|---|
| No licence or representative number, or reluctance to give one | Every broker must be licensed or authorised |
| A fee requested before any service | Moneysmart says a broker is not entitled to request a fee before providing their services |
| Only 1 option presented | Moneysmart says the broker should present more than one option |
| Only the headline rate discussed | The comparison rate and fees show the real cost |
| Vague answers on commission | Brokers must disclose the commissions they may receive |
| No credit guide | The credit guide is generally required before the broker starts work for you |
If a broker will not answer clearly, choose another. 434 businesses are listed in our Perth mortgage broker directory.
If something goes wrong after you choose
If you are unhappy with a broker’s advice or fees, Moneysmart suggests raising it with the broker first, then making a written complaint to the broker’s business. If that does not resolve it, the Australian Financial Complaints Authority (AFCA) offers free, independent dispute resolution. The broker’s credit guide must give you AFCA’s contact details.
For what the first meeting looks like, see what does a mortgage broker do, and for whether to use a broker at all, see mortgage broker vs bank.
Checked against Moneysmart, ASIC and the National Consumer Credit Protection Act on 26 September 2026. This is general information, not financial advice. It does not consider your objectives, financial situation or needs.
Frequently asked questions
What questions should I ask a mortgage broker?
Ask 4 first: how the broker is paid, and which lenders they can and cannot access. Then ask why the recommended loan is in your best interests, and what it will cost in total, including the comparison rate and fees. After that, cover lenders mortgage insurance, fixed-rate periods and the documents they need.
Is it rude to ask about a broker’s commission?
No. Brokers must disclose the commissions they may receive, and the proposal document must include a reasonable estimate of the commission on the loan they recommend. Moneysmart suggests asking how the broker is paid.
What should I not say to a mortgage broker?
Do not leave out debts or overstate your income. A broker must make reasonable inquiries about your finances and take reasonable steps to verify them, so gaps usually surface anyway and can delay or derail your application.
What are red flags with a mortgage broker?
Red flags include no credit licence number, a fee requested before any service, only 1 loan option, vague answers on commission, and no credit guide.
Can a mortgage broker charge me a fee?
Yes, but only with a written quote that you sign before the broker provides the service. Moneysmart says a broker is not entitled to request payment of a fee before providing their services.
What should first home buyers ask a broker?
First home buyers should ask the same core questions, plus which grants and schemes they qualify for, whether the broker works with lenders on the 5% Deposit Scheme, and how to avoid lenders mortgage insurance. Our guide to WA first home buyer grants and schemes covers the options.
Frequently asked questions
- Is it rude to ask a broker how many lenders they compared?
- No. It's a standard, reasonable question, and a broker who deals with it regularly won't be bothered by it. If anything, hesitation to answer is more telling than the question itself.
- Should I ask more than one broker the same questions?
- It can be useful, especially for your first home loan. Comparing how two brokers answer the same questions gives you a sense of who explains things more clearly and who you'd rather work with through a multi-week process.
- What if a broker only recommends one lender?
- Ask why. There can be a legitimate reason, such as that lender genuinely fitting your situation best, but you should hear a clear explanation rather than assume it's automatically the right call.
- Do these questions apply to refinancing too?
- Yes. The same questions work whether you're getting your first home loan, refinancing, or arranging finance for an investment property. The details of the answers will just differ by situation.