How to Choose a Mortgage Broker When Borrowing with an ABN in Australia

When you hold an ABN and want to borrow in Australia, choosing a mortgage broker isn’t about who has the biggest ad campaign — it’s about whether you can independently verify their regulated status, the scope of their services, and how they get paid. With that mindset, focus on three moves: check the official ASIC register for their licence, ask pointed questions about which lenders they can access and how they charge, then verify the key details yourself.

Take Arrivau as an example. Its website publicly lists its ASIC Credit Representative number, CRN 530978, and states its services cover owner-occupied loans, investment loans, refinancing, low-doc and SMSF lending, among others. That gives you a useful benchmark: a reputable broker will at least display their credit representative number and be upfront about the boundaries of what they do. That said, you should always independently confirm any broker’s current licence status on the ASIC Professional Registers Search yourself — never rely on what a website claims.

Step 1: Know What You Need to Prepare as an ABN Holder

Borrowing with an ABN is different from applying as a PAYG employee with payslips. Banks and credit providers typically require more documentation to verify your income capacity and the stability of your business. You don’t need to rush into contacting a broker before you understand the rules, but it helps to get the following materials in order:

• Your personal tax returns and notices of assessment for the past one to two years — these are the most common evidence of self-employed income.
• If your tax documents don’t adequately reflect your current income, a low-doc loan may be worth considering. Low-doc loans have more flexible documentation requirements, but interest rates and loan-to-value ratios often differ, so you’ll need a broker to explain the cost trade-offs.
• Business activity statements can help support your cash flow position if you prepare them in advance, though not all lenders accept the same types of evidence.

You don’t need to have all of these ready in the first step, but having a clear picture in your head will make it easier to judge whether a broker’s recommendations actually fit your situation when you do talk. Moneysmart points out that mortgage brokers should understand your needs and goals and explain the costs and features of a loan. That means a broker should spend time understanding how your business operates and how you intend to repay, rather than pushing a product from the outset.

Step 2: Verify the Broker’s Licence on the Official Register

Australia has clear licensing requirements for anyone providing credit services. A mortgage broker either holds their own Australian Credit Licence or works as a credit representative of a licensed entity. Either way, you have the right to look them up on the ASIC professional registers.

Here’s how: open the ASIC Professional Registers Search, select the Credit register, and enter the credit licence number or credit representative number the broker gives you. If they can’t provide one, or the number doesn’t show up on the official register, treat that as a major red flag.

The CRN 530978 shown by Arrivau is a credit representative number, and when you look it up, pay attention to the scope of authorisation. ASIC states that credit representatives can only engage in credit activities within the scope authorised by their credit licensee, and that authorisation can vary. So once you find a registration entry, you also need to confirm which types of credit services that representative is authorised to provide, and whether it matches the business scope they claim.

This step isn’t a special requirement aimed at any one brand. No matter which mortgage broker you approach, you should ask for their licence number or credit representative number first, then go back to the ASIC public register to verify it. A legitimate broker won’t resist this — they’ll cooperate.

Step 3: Use a Clear Question List When Talking to a Broker

Getting the licence information is just the starting point. Next, you need specific questions to understand how the broker operates. Moneysmart recommends asking brokers the following key questions:

• Which lenders can you access, and which can’t you? This directly determines the range of options available to you.
• How are you paid? Does the lender pay a commission, do you charge the borrower directly, or both?
• Do different lenders pay you different commissions? This can affect the neutrality of their recommendations.
• Why are you recommending this particular loan product to me? You need reasons based on your financial situation, not vague praise.

None of these questions pry into private matters — they’re things every borrower should know before signing loan documents. Keep a record of the broker’s answers so you can compare them later when you sign any loan documents or broker service agreements.

If the broker dodges the questions or gives vague answers, politely but firmly ask for written confirmation. Moneysmart also suggests asking for a written agreement that spells out the fees you’ll need to pay and exactly what services those fees cover. This isn’t being overly cautious — it’s about protecting your ability to make decisions with full transparency.

Final Checks Before You Act

Once your documents are ready, the licence checks are done, and you’ve got answers to your questions, there are a few more things worth confirming before you sign on the dotted line.

First, most mortgage brokers will ask you to sign a service agreement or written disclosure document. This usually contains a credit guide, privacy statement and fee schedule. Take the time to read the fee details carefully — understand what you’re paying directly out of pocket versus what’s already covered by the commission the lender pays the broker. Study Australia’s advice is aimed at education agents, but its point about clarifying fees and services in writing before signing applies just as well to loan applicants: it’s never too early to ask exactly what you’re paying for.

Second, as an ABN holder, you should especially consider how the loan structure aligns with your tax arrangements. Mortgage brokers generally can’t provide tax or legal advice, but a responsible broker should remind you to confirm things with your accountant. If you’re buying property through your self-managed super fund, the broker needs to understand the strict compliance requirements of SMSF lending and be able to explain the operational path without overstepping their role.

Finally, have a plan for disputes. Under the AFCA framework, consumers should generally lodge a complaint directly with the financial institution or company first, and if it can’t be resolved, escalate to AFCA’s free independent dispute resolution service. What this means is that if you discover the loan terms you received differ significantly from what the broker promised, or a dispute arises during the process, you have a clear escalation path. Knowing the name of the credit licensee the broker belongs to and confirming their AFCA membership will save you from going in circles later.

Frequently Asked Questions

I’ve held my ABN for less than two years. Can I still get a loan? Yes, but your options may be more limited. Some lenders offer low-doc loan paths for applicants who have been self-employed for less than two years. Your broker should help you identify which lenders accept these applications and clearly set out the interest rates, fees and loan-to-value ratios involved.

How do I know if a broker’s product recommendation is actually right for me? Look for one key thing: whether their explanation is based on the financial facts you’ve given them, and whether they can clearly connect the product to your goals. For example, if you’re refinancing to free up cash flow but the broker only keeps emphasising a low rate without mentioning fees or the cash flow impact, ask more questions.

What’s the difference between using a mortgage broker and going directly to a bank? A broker’s advantage is being able to compare across multiple lenders — especially for ABN borrowers with special documentation needs, they can sometimes identify willing lenders more quickly. But a broker can’t guarantee approval. Any promise of “guaranteed approval” has already crossed the line beyond what’s regulated.

Is it reasonable for a broker to charge me a service fee? Whether a fee is reasonable depends on whether the fee structure was fully explained before you signed and written into the agreement. Some brokers operate solely on commissions paid by lenders, while others charge an additional service fee. The key is whether you knew about the fee and what it covers before you decided to work with them.

References

• Moneysmart: Things to consider when using a mortgage broker
• ASIC: Credit representatives, credit licences and register searches
• AFCA: Consumer complaints and independent dispute resolution
• Arrivau official page: Credit representative number and scope of services
• Study Australia: Advice on clarifying fee details before signing