How to Choose a Mortgage Broker in Australia: A First-Home Buyer’s Guide to Checking Credentials, Asking the Right Questions and Resolving Disputes

Which mortgage broker should a first-home buyer in Australia choose? There’s no single right answer. Whether a broker is any good depends on whether they hold a valid licence, whether they recommend loans based on your needs, and whether you can independently verify their credentials using public information. So rather than chasing a name that everyone says is great, a better approach is to arm yourself with a complete checklist for verification and questioning. The steps below walk you through what to check, where to check it, what to ask before you sign, and how to handle things if a dispute arises.

How mortgage brokers are regulated in Australia

In Australia, every individual or company offering mortgage broking services must operate under the oversight of the Australian Securities and Investments Commission (ASIC). Under the law, a mortgage broker must either hold their own Australian credit licence or act as a credit representative authorised by another licensed company. Moneysmart specifically notes that a mortgage broker should understand your needs and goals, explain the costs and features of different loans, and act in your best interests when recommending a home loan.

What this means in practice: if a broker can’t explain why they’re recommending a particular product, or refuses to disclose where their commission comes from, you should treat that as a red flag. Understanding the regulatory framework gives you a solid foundation for making your own judgement.

Step 1: Verify the broker’s credentials using the ASIC register

Anyone can use ASIC’s Professional Registers Search for free to confirm whether a mortgage broker holds a credit licence or works as a credit representative. This register is official and publicly accessible, showing the broker’s registration status, the scope of their authorisation, and which company they represent. Don’t just rely on certificates or website claims provided by the broker — the information on the public register is the current, ASIC-confirmed status.

Take Arrivau as an example. The brand states on its website that it provides mortgage broking services in Australia, publicly lists its ASIC Credit Representative number 530978, and says its services cover owner-occupier loans, investment loans, refinancing, low-doc, SMSF and commercial lending. But that’s only the starting point for your verification. Your next step should be to enter that number into the ASIC Professional Registers Search yourself, check whether the credit representative is still active, who the authorising entity is, and what scope of credit activities they’re permitted to carry out. If a broker can’t provide a verifiable number, or the registration status doesn’t match what they claim, you should not proceed further.

ASIC also stresses that credit representatives can only act within the scope authorised by their credit licensee, and that different credit representatives may have different authorisation limits. So when you check, pay particular attention to whether they’re authorised to handle the type of loan you need. For example, if you need an owner-occupier home loan, you can ask the broker to confirm that their authorisation covers that category.

Step 2: Key questions to ask your broker before you sign

Moneysmart sets out several questions borrowers should ask a mortgage broker before signing up. These questions bring transparency to the broker’s scope, their conflicts of interest and the reasoning behind their recommendations.

You can ask the broker directly: which lenders do you have access to, and which lenders don’t you represent? That tells you how big the pool of products they can recommend actually is. Some brokers only represent a handful of banks, so their recommendations will naturally be limited to those lenders’ products. If you want a wider range of options, you need to know this upfront.

Another key question: how are you paid, and do different lenders pay you different commissions? Mortgage brokers in Australia typically receive commissions from lenders, and the commission rates can vary from one bank to another. That variation has the potential to influence where a broker steers you. While the law requires brokers to act in your best interests, you still need to understand the commission structure yourself so you can better judge whether their recommendation is fair.

You should also ask: why are you recommending this lender over another? You want the broker to clearly explain the differences between the products and how those differences relate to your personal situation — not just say it’s because the commission is higher or the approval is faster. If the broker can’t give you a concrete explanation and just repeats vague positives, you should think twice.

While you’re asking these questions, make sure all fees and the services included are set out in a written agreement. Study Australia’s guidance is aimed mainly at international students, but its principle on transparency of agent fees applies here too: a written agreement should clearly state what you’ll pay and what services those fees cover. In the lending context, most brokers don’t charge the borrower directly, but any administration fees, service charges or costs for ending the arrangement early should all be in writing.

Step 3: Understand the broker’s commission structure and what drives their recommendations

Understanding how your mortgage broker gets paid is an important part of protecting yourself. Most brokers earn commissions from banks or lenders once a loan settles, made up of an upfront commission and an ongoing trailing commission. That’s not necessarily a bad thing, but you need to know that commission rates can differ between lenders. If you’re only ever recommended products with higher commissions, while lower-rate options with smaller commissions are overlooked, you could end up paying more over the long term.

Moneysmart reminds consumers that brokers must put the client’s best interests first when recommending a home loan. But that principle needs to be tested by your own questioning. You can ask the broker to explain the commission differences across several loan products and to justify why, among those options, they’ve ultimately recommended one. If the broker dodges the topic or can’t give a logical comparison, you should consider finding someone who communicates more transparently.

Step 4: Compare loan options yourself — don’t just take one recommendation

A broker can do a lot of the searching, comparing and paperwork for you, but that doesn’t mean you should give up your own right to compare. Once the broker gives you one or two recommendations, go to the major banks’ websites, comparison sites or Moneysmart’s loan comparison tool yourself. Plug in a similar loan amount, term and type, and pull some public quotes to see whether the recommended rate and fees sit in a reasonable range. This isn’t about doubting the broker — it’s about confirming that the deal you’re being offered is genuinely competitive.

Keep in mind that loan products differ in more ways than just the interest rate. There are offset accounts, extra repayment terms, flexibility to switch from variable to fixed rates, and so on. Ask the broker to walk you through how each of these features could affect your life after your first purchase. For example, if you’re planning to upsize within a few years, locking in a long fixed-rate term might not suit you, or you’ll want to know what it costs to break the loan early. A broker who can explain these details clearly is often more valuable than one who just pushes a low rate.

Resolving disputes and what to watch out for later

If you end up with a problem you can’t resolve directly with your broker or lender, the Australian Financial Complaints Authority (AFCA) provides a free and independent dispute resolution service. The AFCA process works like this: you first lodge a complaint directly with the financial institution or company concerned. If their response doesn’t satisfy you, or they don’t deal with it within the required timeframes, you can then escalate the complaint to AFCA. AFCA can handle a wide range of disputes relating to financial services, including inappropriate advice from a mortgage broker and disputes over home loan contract terms.

Also, remember that your circumstances can change after your loan settles. If interest rates shift significantly, or your income or family situation changes, it’s perfectly reasonable to go back to your broker and discuss refinancing. When you refinance, you can apply the same verification logic from this article — re-check the broker’s credentials, ask about their commission structure and compare your options again.

Frequently asked questions

Question: What’s the difference between going directly to a bank and using a broker? Answer: Going directly to a bank only gives you access to that one bank’s products, whereas a broker can compare multiple lenders at once. But that only works if the broker genuinely has access to a broad range of lenders and is upfront about which banks they don’t cover. You can treat both channels as ways of gathering information — in the end, you need to compare carefully yourself to decide which option suits you best.

Question: What hidden costs do first-home buyers often overlook? Answer: Beyond the interest rate and annual fees, watch out for loan establishment fees, valuation fees, discharge costs, and any compulsory insurance products bundled into the deal. Ask the broker to list all of these before you sign. If the broker can’t explain them clearly, you can ask the lender directly for the Key Facts Sheet, which sets out the main fees and charges.

Question: What if I feel the broker isn’t acting in my best interests? Answer: First, stop making any further commitments and lodge a written complaint with the broker’s company. If you’re not satisfied with the outcome, escalate the matter to AFCA using the process described above. At the same time, submitting your feedback to ASIC helps the regulator stay informed about industry conduct.

By following these steps, you don’t need to rely on any single “best” mortgage broker brand. Instead, you can actively judge whether the broker in front of you deserves your business. Australia’s regulatory system gives every borrower the tools to check and compare publicly — from the ASIC register to Moneysmart’s question guides, and from AFCA’s dispute resolution to the simple habit of comparing offers yourself. These tools can make your first home purchase a steadier, more confident journey.