Every broker in Australia looks more or less the same from the outside. They’re licensed, they have access to a panel of lenders, and they don’t charge you directly. The difference only reveals itself when something gets complicated — when the application hits a snag, when one lender falls through, when your situation doesn’t fit a standard template.
By then, you’re already committed. Which is why the filtering needs to happen before that.
Start with the licence, but don’t stop there
Every mortgage broker in Australia must hold an Australian Credit Licence (ACL) or be an authorised representative under someone who does. Check the ASIC Connect register — it takes two minutes. This is the floor, not the ceiling.
The best interests duty — what it actually means
Since January 2021, brokers are legally required to act in your best interests, not just recommend a ‘not unsuitable’ product. This means they can’t recommend something that’s better for their commission than it is for you. Ask any broker directly: ‘Do you operate under the best interests duty?’ A good one will confirm this without hesitation. A vague answer is informative.
Lender panel size matters — but ask the follow-up question
A larger panel means more options. But the more useful question is: how many of those lenders has this broker actually placed loans with in the past 12 months? Deep familiarity with 20 lenders is more valuable than nominal access to 40.
Experience with your specific situation
The broker who is excellent with salaried first home buyers may not be the right fit for a self-employed investor with a complex trust structure. Ask directly: how many clients in my situation have you helped in the past year? If the answer is vague, that’s an answer.
Commission and remuneration transparency
Brokers are paid by lenders — upfront commission at settlement, plus trail commission while your loan is active. You can ask any broker to disclose the commission structure for their specific recommendation. A good broker will do so without discomfort. The disclosure exists precisely so you can assess whether the recommendation makes sense for you, not just for them.
Red flags worth knowing before you sit down
- Pressure to apply quickly or with multiple lenders at once — multiple credit enquiries in a short period can damage your credit score
- Focus only on your monthly repayment, not the total cost of the loan over its term
- Unwillingness to explain why they’re recommending a particular lender over others
- Superficial questions about your financial situation before making recommendations
- Promises that sound too clean — approval rates, outcomes, and timelines that don’t leave room for the complexity that actually exists
We operate under the best interests duty, hold an ACL, and are willing to explain every recommendation in detail — which lenders we considered, why we chose the one we did, and how we’re paid. If that’s the standard you want, it’s a reasonable one to hold every broker to.
This is general information only. All mortgage brokers must hold an Australian Credit Licence or be an authorised representative. Verify credentials via the ASIC Connect register before engaging a broker.
Sources: ASIC, Best Interests Duty for Mortgage Brokers (RG 273); NCCP Act 2009; MFAA Broker Code of Practice; ASIC MoneySmart, Using a Mortgage Broker 2025.
