Start with your own home-loan priorities

Before the meeting, write down your must-haves and nice-to-haves. This gives the broker something real to assess and makes it easier for you to judge whether their recommendation is personalised.For example, you may value low ongoing costs, the ability to make extra repayments, an offset account, a predictable fixed repayment period, a quick pre-approval pathway or flexibility if your work situation changes.

• Your comfortable monthly repayment range
• Your deposit amount and where it has come from
• Any credit cards, personal loans, car finance, HELP debt or other commitments
• Your preferred purchase timeframe and property type
• Features you expect to use, rather than features that simply sound useful

Question 1: Are you licensed and who is responsible for your credit advice?

Ask whether the broker holds an Australian Credit Licence or acts as a credit representative of a licensee. Then ask for the relevant details so you can check them independently.This is not about catching someone out. It is a basic due-diligence step that confirms who is accountable for the credit advice and loan application support you receive.

• Useful answer: clear licence or representative details, plus a straightforward explanation of the broker’s business structure.
• Pause and ask more: the broker avoids the question, provides unclear details or dismisses your wish to verify them.

Question 2: Which lenders can you access-and which ones can’t you access?

A broker generally works with a lender panel rather than every lender in the market. Ask how many lenders they can access, what types of lenders are represented and whether there are relevant lenders they cannot offer.The size of a panel is not the only test. What matters is whether the broker can explain how the available lenders fit your circumstances and whether the range is broad enough to support a meaningful comparison.

• Ask whether the panel includes major lenders, smaller lenders and non-bank options where appropriate.
• Ask whether any lender restrictions could matter for your employment type, deposit size, property location or intended loan structure.
• Ask the broker to explain why the shortlisted lenders were chosen for you.

Question 3: How do you get paid, and will I pay any fees?

Many brokers receive lender-paid remuneration when a loan settles and may also receive an ongoing trail commission while the loan remains in place. Some brokers may charge a borrower fee in certain circumstances. Ask for a clear explanation of both.The important point is transparency. You should understand whether a fee applies to you, when it becomes payable and what service it covers. If commission differs between options, ask how the broker manages that potential conflict when making a recommendation.

• Ask for direct fees, lender fees and any other likely charges to be clearly separated.
• Ask whether there is a charge if you withdraw, change lenders or do not proceed.
• Ask for fee information and key loan costs in writing before you commit.

Question 4: What do you need to know about me before recommending a loan?

This question tests the broker’s process. A personalised recommendation should follow a proper discussion about your income, spending, debts, deposit, dependants, employment, property plans and future goals.Be cautious if the conversation jumps straight to a lender, rate or maximum loan amount without first building a clear picture of your situation. Home loans can look similar on the surface but have different assessment criteria, costs and features.

• Green flag: the broker asks follow-up questions and checks assumptions.
• Green flag: they distinguish between your immediate purchase and your longer-term plans.
• Red flag: a recommendation is made before your circumstances have been properly explored.

Question 5: Can you compare the total cost, not just the interest rate?

A lower rate can be valuable, but it should not be viewed in isolation. Ask the broker to walk you through the interest rate, comparison rate, establishment fees, ongoing fees, discharge costs, package costs and any charges that could apply if you change the loan later.Then ask how the loan features affect value for you. An offset account or redraw facility may be useful if you are likely to keep savings available or make extra repayments. If you will not use a feature, paying more for it may not make sense.

• Request a side-by-side comparison of at least two suitable options.
• Ask for estimated repayments at the proposed loan amount and term.
• Ask what assumptions are behind the comparison, including owner-occupier or investor use and principal-and-interest or interest-only repayments.
• Ask about the likely effect of fixing, splitting or changing the loan in the future.

Question 6: What deposit, LMI and upfront costs should I plan for?

Your deposit is only one part of the cash you may need to buy a property. Ask what loan-to-value ratio the proposed application would have, whether lenders mortgage insurance may apply and what other upfront costs you should allow for.A clear answer helps you avoid treating every dollar in your account as available for the deposit. It also lets you compare whether waiting to save more, changing the loan amount or considering another lender could alter the overall position.

• Ask how your deposit source needs to be documented.
• Ask whether a gift, bonus, sale proceeds or savings history requires extra evidence.
• Ask for a realistic list of potential purchase and loan costs, not just the deposit target.
• Ask whether your preferred price range leaves a sensible financial buffer.

Question 7: How much can I borrow, and what repayment level is likely to be comfortable?

Borrowing capacity is a lender assessment, not a spending target. A useful broker will help you understand the difference between the maximum amount a lender may consider and a loan size that still gives you room for everyday costs, maintenance, savings and changes in circumstances.Ask to see repayments at different loan amounts and, where helpful, different interest-rate scenarios. The aim is not to predict the future perfectly. It is to make sure you understand the trade-offs before you set a purchase budget.

• Ask to model a lower loan amount as well as the maximum available amount.
• Discuss expected changes such as parental leave, reduced hours, school costs, renovations or an expiring fixed period.
• Ask what spending and commitments the lender is likely to review as part of the application.

Question 8: What documents do you need, what happens next and how long could it take?

A strong broker should be able to map the process from first discussion to pre-approval, property selection, formal application, valuation, approval and settlement. Timeframes vary by lender and by the complexity of your situation, so look for a realistic explanation rather than a promise.Ask for a tailored document checklist early. Gathering evidence of income, savings, liabilities and identification in advance can reduce last-minute stress and help you understand whether there are gaps to address before applying.

• Request a document checklist specific to your employment and deposit circumstances.
• Ask which steps need to happen before you make an offer or bid at auction.
• Ask how the broker will keep you updated if the lender requests more information.
• Ask what factors could delay a pre-approval or formal approval.

Question 9: Why are these options in my best interests, and what are the trade-offs?

This is one of the most revealing questions to ask a mortgage broker. Ask them to explain why each recommended option suits you, what compromises it involves and why another available option was not preferred.A transparent answer will be specific. It may refer to your deposit, employment type, desired features, repayment preference, property plans or need for flexibility. It should not rely only on a broad statement that one lender has a good rate.

• Ask for at least one alternative option to be explained alongside the preferred recommendation.
• Ask what you give up in exchange for a lower rate, more features or faster processing.
• Ask whether a lender outside the broker’s panel may be worth investigating directly.
• Ask for time to read the loan documents and comparison before signing.

Question 10: What support will I receive after settlement or if my circumstances change?

The right loan today may need reviewing later. Ask whether the broker stays in touch after settlement, helps with rate reviews, can discuss refinancing when appropriate and remains available if you need to change the loan structure.You are not looking for a promise that a better deal will always exist. You are looking for clarity about the service relationship after the initial application is complete.

• Ask how often the broker offers a home-loan review.
• Ask who will be your contact if the original broker is unavailable.
• Ask how they handle changes such as moving home, renovating, refinancing or changes to household income.
• Ask whether post-settlement support is included or may involve a separate service.

Green flags to look for

Positive signs usually show up in the quality of the conversation, not in sales language.

• They begin by understanding your goals and financial position.
• They explain remuneration and fees without becoming defensive.
• They offer more than one suitable option and explain the differences clearly.
• They distinguish borrowing capacity from a manageable repayment level.
• They provide a clear checklist, timeline and communication plan.
• They give you time to think, compare and ask follow-up questions.

Red flags that warrant a closer look

A single concern may simply need clarification. Several concerns together are a reasonable reason to pause, seek another opinion or speak with a different broker.

• Pressure to sign quickly without a clear reason connected to your purchase timeline.
• A recommendation made before the broker understands your income, debts, deposit and plans.
• Vague answers about commission, direct fees or lender access.
• Only one option presented without an explanation of alternatives.
• A heavy focus on a headline rate while costs, features and loan flexibility are glossed over.
• Unrealistic approval promises or a refusal to explain likely risks and delays.

Compare brokers on clarity, not only on the rate quoted

If you speak with more than one broker, compare like with like. Record the lenders each can access, the fees and costs discussed, the features proposed, the reasons given and how easy it was to understand the advice.The right fit is usually the broker who is transparent about limitations, listens carefully and helps you make an informed decision at your own pace.