How to Choose a Mortgage Broker in Australia (2026 Guide)

Mortgage brokers now arrange more than four out of every five new home loans in Australia. In the June 2026 quarter, brokers settled a record 81.6% of new residential loans, up from 53.9% eight years earlier, according to MFAA data compiled by Cotality.

That makes choosing a broker one of the most important calls you'll make when buying or refinancing. And it's worth doing carefully: in October 2026, ASIC's first dedicated review of the industry's best interests duty found most brokers were doing the right thing, but also found cases where a dearer loan was recommended without clear evidence of why it suited the borrower better.

This guide walks you through a simple seven-step process, the questions to ask, what good answers sound like, and a scorecard you can use to compare two or three brokers side by side.

Key takeaways

• Check every broker on ASIC's Professional Registers before you book a call. It takes two minutes.
• Panel fit matters more than panel size. Ask which lenders they actually use for borrowers like you.
• Most brokers are paid by the lender, not you, but you're entitled to see exactly what they'll earn, in writing, before you apply.
• If your broker recommends a loan that isn't the cheapest suitable option, ask them to explain why in writing. ASIC expects them to be able to.
• The best brokers ask more questions than they answer in the first meeting.
• Talk to two or three brokers, compare them on the same criteria, then decide.

How to choose a mortgage broker: the 7-step process

1. Work out what kind of help you need: first home, refinance, investment, self-employed, or a complex situation.
2. Build a shortlist of two or three brokers from referrals and independent sources, not just ads.
3. Verify their licence and memberships on the ASIC register and MFAA or FBAA directories.
4. Check their lender panel and specialisation against your situation.
5. Understand exactly how they're paid and which documents they must give you.
6. Use the first meeting as a test, with the questions below.
7. Score your shortlist side by side and choose.

Step 1: Work out what kind of help you need

Brokers aren't interchangeable. Someone who settles 100 straightforward refinances a year may not be the right person for a self-employed borrower with two years of tax returns and a business that changed structure last year.

Before you start looking, jot down a few lines about your situation:

• First home buyers need a broker who knows the federal deposit schemes, state stamp duty concessions and grants, and how lenders treat gifted or low deposits.
• Refinancers need someone who will compare your current rate, break costs (if fixed) and features honestly, and tell you if staying put and negotiating a better rate is the smarter move.
• Investors need someone comfortable with loan structuring, interest-only periods, multiple properties as security and how serviceability is assessed across a portfolio.
• Self-employed borrowers need a broker with experience in low-doc and alt-doc lending and lenders who assess business income flexibly.
• Borrowers with credit issues, construction loans, SMSF loans or unusual property types need specialist lenders, so the broker's panel and experience matter even more.

This short description becomes your yardstick for every broker you speak to.

Step 2: Build a shortlist of two or three brokers

The quality of your final choice depends on the quality of your shortlist. Good places to start:

• Recent personal referrals. Friends, family or colleagues who settled a loan in the last year or two can tell you how the broker behaved when things got stressful, not just how they came across in the first meeting.
• Professionals who see brokers in action. Conveyancers, buyer's agents and accountants work with many brokers and know who settles on time and who goes quiet.
• Industry directories. The MFAA's Find a Broker tool and the FBAA member directory list accredited members by location and specialty.
• Reviews. Useful for filtering, but read them properly (see Step 3).

Stop at three. Beyond that, the meetings start to blur together and the comparison gets harder, not easier.

Step 3: Verify their licence, memberships and reviews

This is the cheapest filter in the whole process and often rules someone out before you've spent any time on a call.

Check the ASIC Professional Registers

Every mortgage broker in Australia must either hold an Australian Credit Licence (ACL) or be an authorised Credit Representative of a licence holder. Their licence or Credit Representative number is usually in their website footer or email signature.

Search the broker's name or number on ASIC's Professional Registers Search. You're checking that:

• their registration is current, not ceased or suspended
• the licence they sit under matches the business you're dealing with
• they don't appear on ASIC's banned and disqualified register

The register also shows when they were first authorised, which is a handy guide to experience. If a broker can't be found, don't proceed.

Check industry body membership

Membership of the Mortgage & Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA) isn't legally required, but members sign up to a code of practice, meet education standards and complete ongoing professional development. Either is a good sign.

Read reviews for substance, not stars

• Volume and recency: a 5.0 rating from eight reviews tells you little. Focus on the last 12 months, because staff and service change.
• Specificity: the most useful reviews name the broker, describe the situation and say how it ended.
• Patterns: a cluster of generic five-star reviews posted within a few days can be a sign of a review drive rather than genuine feedback.
• How they handle criticism: a calm, professional reply to a negative review says a lot.

Step 4: Check their lender panel and specialisation

Most brokers are accredited with somewhere between 20 and 60+ lenders. A bigger number sounds better, but what matters is whether the panel includes the right lenders for you, and whether the broker genuinely uses it.

In 2025, fewer than 44% of broker-arranged home loans went to the major banks' main brands, with non-banks, smaller banks and international banks gaining share. A broker who sends almost everything to the same two or three lenders may not be shopping as widely as their panel suggests.

Ask:

• How many lenders are you accredited with, and does that include non-bank and specialist lenders?
• Which lenders have you used most in the past 12 months for borrowers like me?
• Is your brokerage, or the aggregator you work through, owned by or affiliated with any lender?
• How many lenders will you actually compare for my situation, and will you show me the comparison?

Step 5: Understand exactly how they're paid

For a standard home loan, most brokers don't charge you anything. The lender pays them in two parts:

• Upfront commission at settlement, typically around 0.55%–0.70% of the loan amount (plus GST), usually calculated on the loan balance less any money in an offset account.
• Trail commission, typically around 0.15%–0.20% a year of the outstanding balance, paid monthly for as long as you keep the loan.

Example: On a $700,000 loan at a 0.65% upfront rate, the broker would receive $4,550 at settlement. If you had $75,000 in an offset account at settlement, it would be calculated on $625,000 instead, about $4,060. A 0.15% trail on a $600,000 balance works out to roughly $900 in the first year, shrinking as you pay the loan down.

If you refinance or pay out the loan within the first year or two, the lender can claw back some or all of the upfront commission from the broker. That's one reason a good broker will ask about your plans for the next few years.

Some brokers charge a fee for service, particularly for complex or commercial lending, or if the loan doesn't go ahead. That's legitimate, but they must give you a written quote before charging anything.

The documents you should receive

A licensed broker has to give you specific documents. Knowing them helps you spot a broker who's cutting corners:

• Credit Guide, at the start. Shows their licence details, the lenders they use most, how they're paid, and their complaints process, including AFCA membership.
• Credit Quote, only if they'll charge you a fee. Sets out the fee before they start work.
• Credit Proposal Disclosure, before you apply. Shows the commission they expect to receive on the recommended loan, in dollars.
• Preliminary assessment, which you're entitled to see on request. Explains why the loan is "not unsuitable" for you.

The best interests duty

Since 1 January 2021, mortgage brokers have been legally required to act in your best interests when recommending a loan, and to put your interests first if they conflict with the broker's own. Volume-based bonuses and campaign commissions from lenders were also banned. Banks dealing with you directly are not under the same best interests duty.

What ASIC's 2026 review means for you

In October 2026, ASIC released Report 840, its first dedicated review of how the broking industry is meeting the best interests duty. It examined 13 credit licensees across eight large aggregator groups, which together cover around two-thirds of Australia's mortgage brokers.

The headline findings:

• Broker practices were generally in line with ASIC's guidance.
• In seven of the eight groups, brokers didn't recommend the cheapest loan option in more than 20% of cases.
• Recommending a dearer loan can be justified, for example for an offset account, flexibility or a better chance of approval, but ASIC found cases where there was no clear evidence to support the choice.
• Complaints about best interests failures took longer to resolve than other complaints, and some were missed or withdrawn without full investigation.

ASIC's message was that the bigger the cost difference, the stronger the reasoning a broker needs to show.

What to do with this: ask every broker you're considering, "If you recommend a loan that isn't the cheapest suitable option, will you explain why in writing?" A good broker will say yes without hesitation, and will usually already have a written recommendation process.

Step 6: Use the first meeting as a test

A good first meeting feels like a structured fact-find. A poor one feels like a sales pitch. The broker should spend most of the time understanding your income, debts, deposit, goals and timeline before mentioning any lender or rate.

Use these questions and listen for the answers.

Q: Will I deal with you throughout, or will my file be handed to someone else?

A: A good broker will give you a clear answer on who does what, such as a named loan processor for paperwork, with the broker staying responsible for the advice.

Q: Which lenders would you look at for someone in my situation, and why?

A: Listen for specific lenders and reasons relevant to you, not a vague promise to see what is out there.

Q: How many lenders will you compare, and can I see the comparison?

A: The answer should be yes, with a written comparison of at least two or three options.

Q: How are you paid, and does it vary between the lenders you're considering?

A: Expect an open explanation, plus confirmation you'll see the dollar figures in the Credit Proposal Disclosure.

Q: If you recommend a loan that isn't the cheapest, how will you justify it?

A: A good broker will be happy to document the reasons, such as features, approval odds or flexibility, in writing.

Q: Have you recently helped someone in a situation like mine?

A: Look for a concrete example with relevant details (no names).

Q: How long will pre-approval take once I've given you everything?

A: You should get a realistic timeframe, plus what might slow it down.

Q: How will you keep me updated, and how quickly do you reply?

A: They should describe a clear process and a response time they'll stick to.

Q: What happens after settlement?

A: Expect a regular rate review and a plan for when your circumstances change.

Q: How long have you been a mortgage broker, and how many loans have you settled?
A: Experience matters, especially for anything beyond a simple loan. A broker with several years in the industry and a solid track record will know which lenders suit which situations and how to present your application so it has the best chance of approval. If they're newer to broking, ask who mentors them and checks their work. You can also confirm how long they've been authorised on ASIC's Professional Registers.

Step 7: Compare your shortlist with a scorecard

By now you'll usually have two brokers who both seem fine. Score each one from 1 (poor) to 5 (excellent) straight after the meeting, while it's fresh.

Criteria	Broker A	Broker B	Broker C
Licence and membership verified
Experience with borrowers like me
Lender panel fits my situation
Transparent about commission and fees
Quality of the questions they asked me
Explained things clearly, no jargon
Who will actually handle my file
Speed and reliability of communication
Post-settlement service and reviews
Quality of recent, specific reviews
Total

Don't make the interest rate your deciding factor at this stage. The rate comes from the lender, not the broker, and the broker who structures the right loan and keeps reviewing it will usually beat a marginally lower headline rate over the life of the loan.

Types of mortgage brokers

Knowing how a broker's business is set up helps you understand what you're getting:

• Independent brokers run their own business under an aggregator or their own licence and choose their own lender accreditations. Often a good fit for complex or niche situations.
• Franchise or network brokers operate under a national brand with central systems and support. Panels are typically set at the network level.
• Online and digital brokers offer app-based applications, faster document collection and phone or video advice. They suit straightforward loans and borrowers comfortable doing everything online.
• Fee-for-service brokers charge you directly, sometimes rebating the commission to you. Less common for standard home loans.

None of these models is automatically better. The questions in Step 6 will tell you more than the business model will.

Red flags to watch for

Walk away, or at least slow down, if a broker:

• can't be found on the ASIC register, or the licence details don't match
• recommends a lender before they understand your situation
• won't tell you how they're paid or avoids putting it in writing
• pressures you to sign forms or commit on the first call
• promises "guaranteed approval" (no one can)
• suggests adjusting or "tidying up" your income, expenses or documents, which is loan fraud and puts you at risk
• is slow and hard to reach before you've even signed up
• dismisses your questions about alternatives or comparisons
• has no clear answer about what happens after settlement

Do you need a local mortgage broker?

Not necessarily. Most broking now happens by phone, video and secure document upload, and plenty of borrowers never meet their broker in person.

Local knowledge still helps in some situations: lender appetite for certain suburbs, apartment sizes or property types, state-based stamp duty concessions and grants, and relationships with local conveyancers and agents that can smooth a tight settlement. Prioritise expertise in your situation and target market over physical distance.

What happens once you've chosen

A typical engagement looks like this:

1. Fact-find: your income, expenses, debts, deposit and goals.
2. Documents: payslips or tax returns, bank statements and ID.
3. Recommendation: a written comparison and the reasons behind it, plus your Credit Proposal Disclosure.
4. Pre-approval: usually before you make offers.
5. Formal approval and settlement: the broker liaises with the lender, conveyancer and agent.
6. Ongoing reviews: a good broker checks your rate and loan structure at least once a year.

You're not locked in to a broker until an application is lodged. Even then you can change course, though switching after lodgement may mean starting again with a different lender.

If something goes wrong

Raise your concern with the broker first, then with their licensee (named in your Credit Guide), which must have an internal complaints process. If it isn't resolved, you can take it to the Australian Financial Complaints Authority (AFCA). It's free, and all credit licensees must be members.

The bottom line

The right mortgage broker is licensed, specialised in your situation, open about how they're paid, and willing to put their reasoning in writing. Shortlist two or three, check their credentials, test them with the questions above, score them side by side, and choose the one who asked the best questions about your goals, not the one who promised the lowest rate fastest.

Want to put us on your shortlist? Book a free, no-obligation chat with Nick. We'll show you the lenders we compared and exactly what we're paid, in writing, before you apply.

Nikola Milojevic is a Credit Representative 557885 of Finsure Finance, Australian Credit Licence 384704. This article is general information only and does not consider your objectives, financial situation or needs. Speak with a licensed mortgage broker for advice tailored to your circumstances.

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