This article first appeared on awesomelendingsolutions.com.au.
Around three in four new home loans in Australia are now arranged through mortgage brokers. But not all brokers are the same. The right broker can save you money, time and stress. The wrong one can leave you with a loan that doesn't suit you. Here's how to choose a good mortgage broker.
What does a mortgage broker do?
A mortgage broker helps you find, compare and apply for a home loan. They:
- Work out how much you can borrow
- Compare loans from a panel of lenders
- Explain options in plain English
- Check eligibility for government schemes
- Prepare and lodge your application
- Manage the process through to settlement
- Review your loan over time
How are brokers regulated?
Mortgage brokers must hold an Australian Credit Licence or be authorised as a credit representative under a licence. They must:
- Follow responsible lending rules
- Act in your best interests under the Best Interests Duty
- Disclose how they are paid
- Belong to the Australian Financial Complaints Authority (AFCA)
Many brokers are also members of industry bodies such as the FBAA or MFAA, which have their own standards and training requirements.
What makes a great broker?
1. A wide lender panel
The more lenders a broker can access, the more choice you have. Ask how many lenders they work with, and whether that includes major banks, smaller banks and non-bank lenders.
2. Experience with people like you
First home buyers, investors, self-employed borrowers and single parents all have different needs. Look for a broker with experience in your situation.
3. Clear communication
A good broker explains things simply, answers your questions and keeps you updated. You should never feel rushed or confused.
4. Transparency
A good broker tells you how they're paid, explains why they recommend a loan, and shows you the alternatives.
5. Ongoing support
The best brokers don't disappear after settlement. They review your loan regularly and help you as your life changes.
6. Strong reviews
Check Google reviews and ask friends and family for recommendations.
Questions to ask a broker
- Are you licensed, or a credit representative? What is your licence number?
- How many lenders do you work with?
- How are you paid?
- Have you helped people in my situation?
- Do you work with lenders that offer the 5% Deposit Scheme and Help to Buy?
- Will you review my loan after settlement?
- What happens if I'm not happy?
Red flags to watch for
- Pressure to sign quickly
- Pushing one lender without showing alternatives
- Vague answers about fees or commissions
- Encouraging you to borrow the maximum
- Promising guaranteed approval
- Suggesting you leave out information on your application
Why a broker matters more in 2026
2026 has been a big year of change:
- The cash rate rose four times to 4.60%
- APRA introduced a debt-to-income limit from February
- The 5% Deposit Scheme expanded with no income caps
- New negative gearing and CGT laws passed
- SMSF residential borrowing was banned from August
With so many moving parts, an experienced broker who keeps up with the changes can make a real difference.
Broker or bank?
A bank can only offer its own products. A broker can compare many lenders. That doesn't mean a broker will always find a cheaper loan than your bank, but it means you'll see more options before you decide.
Local knowledge matters
If you're buying in NSW, a broker who knows the local market understands things like scheme price caps by postcode, valuation issues in certain suburbs and NSW stamp duty rules. Local experience can help avoid surprises.
What to bring to your first meeting
To get the most from your first chat, have these ready:
- Recent payslips or tax returns
- Bank statements showing savings
- Details of debts, like credit cards and car loans
- A rough idea of your budget and goals
This helps your broker give you a realistic picture from the start.
Frequently asked questions
Does using a broker cost me anything?
For most home loans, brokers are paid by the lender, so there's no direct cost to you. Some brokers charge fees for complex loans. They must tell you upfront.
Can a broker get me a better rate than my bank?
Often, yes, but not always. The value is in comparing the market and finding the right fit.
How do I check a broker's licence?
You can search ASIC's Professional Register for credit licensees and representatives.
Should I use more than one broker?
It's usually best to choose one broker you trust. Multiple brokers can lead to multiple credit enquiries.
Talk to Awesome Lending Solutions
Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.
This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.
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