How to choose the right mortgage broker: Questions every borrower must ask

The best home loan isn't always the one with the lowest rate. It's the one that fits your financial situation. These questions will help you get the right advice before you commit.

These questions apply whether you're buying your first home, refinancing or investing. These can help establish the broker’s transparency and the quality of their panel.

"How many lenders are on your panel, and how many do you actually use?"

Why: A large lender panel doesn't necessarily mean more choice. Some brokers have access to dozens of lenders but regularly place most of their loans with only a handful. Ask how they decide which lenders to recommend and whether they'll consider smaller lenders if they're a better fit for your circumstances.

"How are you paid, and do you charge a separate 'Broker Fee'?"

Why: Most brokers are paid by the bank, but some charge an upfront fee for complex structures. You need to know this cost on day one.

"What is the 'Comparison Rate' vs. the 'Headline Rate'?"

Why: The headline rate is marketing. The comparison rate includes the annual fees and charges. If there’s a big gap, the loan is typically "fee-heavy."

"What happens if I refinance again in a year or two.

Why: This is where the clawback period comes in. Most lenders can reclaim some or all of a broker's commission if a loan is refinanced or repaid within the first 12 to 24 months. It doesn't usually cost you anything directly, but it's worth discussing upfront so everyone understands the timeline and there are no surprises later.

"What happens after my loan settles?"

Why: Your mortgage shouldn't be forgotten once settlement is complete. Ask whether your broker reviews your loan over time, lets you know when better rates become available and helps negotiate with your lender if your loan becomes uncompetitive.

A pre-approval gives you an idea of how much you can borrow before you start house hunting. But not all pre-approvals carry the same weight. These questions will help you understand how reliable yours is, and whether you're ready to make an offer.

"Is this a 'System-Generated' or 'Fully Assessed' pre-approval?"

Some lenders issue automated pre-approvals based on the information you've provided, while others have a credit assessor review your application before issuing conditional approval.

A fully assessed pre-approval generally provides greater certainty, particularly if you're buying at auction or in a competitive market where finance delays can put your purchase at risk.

"What is my Debt-to-Income (DTI) ratio, and how does it limit my lender choice?"

Why: From 1 February 2026, APRA requires banks and other authorised deposit-taking institutions (ADIs) to limit the share of new home loans they write to borrowers with a DTI ratio of six or more. The limit applies separately to owner-occupier and investor lending and is measured across each lender's overall loan book, not on individual borrowers.

"If I find a property on a Saturday, how quickly can you get a 'Desktop Valuation?"

Why: Timing matters once you've found the right property. Many lenders can complete a desktop valuation within hours, while others may require a full inspection that takes longer.

Ask how quickly your broker can organise a valuation and whether they'll be available if you find a property outside standard business hours. In a competitive market, a faster approval process can make all the difference.

Not every borrower should ask the same questions. Here are a few additional questions worth asking based on the type of loan you're applying for.

"Which government schemes or grants am I eligible for?"

Why: Government support can significantly reduce your upfront costs, but eligibility depends on your income, deposit, property price and location. Ask your broker to explain every scheme you qualify for, not just the most common one.

"Can we avoid Lenders Mortgage Insurance (LMI) with a 5% or 10% deposit through a specific scheme?"

Why: Depending on your deposit and eligibility for government guarantee schemes, you may be able to buy with a smaller deposit without paying LMI. Your broker should explain whether that's possible and whether it makes financial sense.

"How does my HECS or HELP debt affect my borrowing capacity?"

Why: Student debt won't usually stop you getting a home loan, but it does reduce your disposable income for servicing calculations. Different lenders assess this differently.

"Would a guarantor loan put me in a better position?"

Why: If a family member is willing to guarantee part of your loan, you may be able to borrow more or avoid paying LMI. Your broker should explain both the benefits and the risks for everyone involved.

"Can we structure this loan to support debt recycling in the future?"

Why: If building wealth is part of your long-term plan, ask whether your loan can be structured to support debt recycling later on. Setting up the right loan structure from the beginning can give you more flexibility as your investment portfolio grows.

"How much of my rental income will this lender use when assessing my borrowing capacity?"

Why: Most lenders don't count all of your expected rental income. Many apply a discount, known as rental shading, to allow for vacancies and ongoing property expenses. Even a small difference between lenders can affect how much you're able to borrow

"Will this lender allow me to cross-collateralise, or are we keeping the titles separate?"

Why: Cross-collateralisation means using multiple properties to secure one or more loans. While it can sometimes simplify borrowing, it often makes refinancing or selling a property more difficult. In many cases, keeping each property's loan separate gives you greater flexibility, so ask your broker why they're recommending a particular structure.

"Are there postcode restrictions for this building?"

Why: Many banks limit lending in high-density areas or specific postcodes (e.g., certain parts of Sydney or Melbourne).

"What is the minimum internal square footage (sqm) this lender requires?"

Why: Many lenders won't touch studios or apartments under 40sqm or 50sqm.

"Could strata levies affect how much I can borrow?"

Why: Some lenders treat high strata fees as an ongoing living expense, which can reduce your borrowing capacity. If you're buying an apartment with unusually high levies, ask how they'll be factored into your application.

"Will the lender have any concerns about the building?"

Why: Issues such as combustible cladding, significant building defects or unresolved structural problems can make some lenders reluctant to finance a property. Ask your broker whether the building is likely to raise any red flags before you commit to buying.

"How are progress payments made, and are there any fees?"

Construction loans are paid to your builder in stages as each phase of the build is completed. Ask whether the lender charges a fee for each progress payment and how the inspection and payment process works.

"Can I make interest-only repayments while my home is being built?"

Some lenders allow interest-only repayments during construction because you're only borrowing funds as they're needed. This can help reduce your repayments until the build is complete.

"What happens if my building costs increase?"

Even fixed-price building contracts can change due to variations or unexpected costs. Ask how the lender will handle any increase in the contract price and whether you'll need to contribute additional funds.

"Will the lender consider the property habitable?"

Most lenders require a property to be liveable before they'll approve a standard home loan. If the home doesn't have a functioning kitchen, bathroom or other essential services, you may need a different type of finance or complete repairs before settlement.

"Can I borrow extra funds for renovations?"

If you're planning to renovate soon after settlement, ask whether renovation costs can be included in your loan or whether you'll need to fund the work separately.