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Questions to Ask a Home Loan Broker: A Checklist Before You Commit

The right questions help you check credentials, understand fees and make sure the loan fits. Here is a simple checklist, with what a good answer sounds like.

The right questions to ask a home loan broker help you check their credentials, understand how they are paid and make sure the loan they recommend really suits you. This checklist covers what to ask before you commit, and what a good answer sounds like.

If you are still deciding whether to use a broker, start with what is a home loan broker. To see how we help, visit our home loans page.

Questions to Ask a Home Loan Broker About Their Credentials

• "What is your Australian Credit Licence or credit representative number?" Brokers must hold a licence or act under one. You can check it on the ASIC register.
• "Which industry body are you a member of?" Many brokers belong to an industry association and an external dispute resolution scheme.
• "How long have you been broking, and what loans do you usually arrange?" Look for experience that matches your situation, such as first home, investment or self-employed.

Questions to Ask a Home Loan Broker About Lenders

• "How many lenders are on your panel?" A wider panel gives you more to compare.
• "Will you compare more than one lender for me?" The answer should be yes.
• "Are there lenders you cannot access?" A few lenders deal direct only. A good broker will tell you. See home loan broker vs bank.

Questions to Ask a Home Loan Broker About Fees and Commission

• "Do I pay you any fee, now or later?" For most standard loans the lender pays the broker, but some brokers charge for complex work.
• "How are you paid by the lender?" They should be able to explain upfront and trail commission.
• "What happens if I refinance or repay early?" Lenders can claw back commission in the first couple of years.
• "Can you give me your Credit Guide and a quote in writing?" Any fee must be disclosed before you proceed.

Read more in mortgage broker fees.

Questions to Ask a Home Loan Broker About the Loan They Recommend

• "Why is this loan right for me?" They should link it to your goals, not just the rate.
• "What are the total costs, including fees?" Ask about application, ongoing and discharge fees, and the comparison rate.
• "What features does it have?" For example an offset account, redraw, extra repayments and fixed or variable options.
• "What are the risks or downsides?" A good broker will not only talk about the positives.
• "Did you consider other options, and why did you rule them out?"

Questions to Ask a Home Loan Broker About the Process

• "What documents will you need from me?" Usually ID, payslips or tax returns, and bank and loan statements.
• "How long will approval and settlement take?" They should give you a realistic timeline.
• "Who will I deal with day to day?" Find out whether it is the broker or an assistant.
• "How will you keep me updated?"

Our loan process page explains each stage.

Questions to Ask a Home Loan Broker After Settlement

• "Will you review my loan in future?" Rates and your circumstances change over time.
• "Who do I contact if I want to refinance or borrow more?"
• "What happens if I have a complaint?" They should explain their complaints process and the external dispute resolution scheme.

Red Flags

• They promise approval or a specific rate before assessing you
• They will not explain fees or commission clearly
• They only discuss one lender
• They pressure you to decide quickly

For more on choosing, see how to choose a refinance home loan broker.

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Frequently Asked Questions

This article is general information only and is not financial or credit advice. Speak to a licensed broker about your situation.