knest.ai • Property intelligence for home buyers
Questions to Ask a Mortgage Broker Before You Sign
A broker must act in your best interests, but that's a floor, not a guarantee of the cheapest loan. These 15 questions, built on ASIC's own list, are what test the recommendation before you sign.
A mortgage broker has to act in your best interests by law (ASIC MoneySmart). But that duty is only a starting point, and the questions you ask are what actually test a recommendation. The good news is you don’t have to invent them: ASIC’s own MoneySmart service publishes a list of questions to ask a broker, and the ones below build on it.
The trick is to prepare first. You can only judge the answers if you know your own numbers, so get your borrowing position clear before the meeting, then walk in with these questions ready.
New to how brokers work? Start with what a mortgage broker does. Otherwise, here are the questions, grouped into five areas, with a line on why each one matters.
- The best-interests duty protects you, but it’s a floor, not a guarantee of the cheapest loan (ASIC MoneySmart). The questions you ask are what test a recommendation, so walk in with them ready.
- Ask how the broker is paid and whether the commission differs between the lenders they compared, and whether any fee falls to you, in writing.
- Ask which lenders they compared for you and why this loan won, including whether a cheaper suitable option exists.
- Ask when a credit enquiry will be lodged, and with how many lenders, so you don’t stack enquiries on your file.
- Confirm they’re licensed on ASIC’s registers, and know that AFCA handles disputes for free if something goes wrong.
Before you ask: get your own numbers straight
You can only judge a broker’s answers if you know your own position. Without your own numbers, a broker’s recommendation is just something to take on trust. Do the prep first. Get a clear picture of what you could borrow, so you can tell whether a recommendation actually fits, and get your paperwork in order so the meeting moves. You can map your borrowing position before you see a broker with knest.ai (an indicative starting point, not a lender’s assessment), and get your file in order before you go. Then bring the questions below.
The five areas to cover, before you get into the detail. Framework: knest.ai, built on ASIC MoneySmart’s questions.
We grouped ASIC’s questions into these five areas to make them easier to work through. Take them in order, or jump to the area you are least sure about.
Questions about how the broker is paid
Start with the money, because it’s where the incentives sit. MoneySmart suggests asking how a broker is paid; these three make it concrete.
- “How do you get paid for this, and does it differ between the lenders you compared?” Different lenders pay different rates, so this surfaces where any incentive sits (ASIC MoneySmart). The mechanics are in how mortgage brokers get paid.
- “Will any fee come from me, and can I see it in a written quote?” A broker can charge you a direct fee, but only in a written quote you sign first (ASIC MoneySmart). What that looks like is in what a broker actually costs you.
- “Would I pay anything if I repay or refinance early?” Clawback is the lender recovering the broker’s commission, and it can’t be passed to you (reg 28VG). A broker can only charge you a fee if it’s disclosed in writing first, and your loan’s own exit costs are a separate thing again.
Which lenders did you compare?
A broker’s value is the comparison, but only across the lenders they can reach. How many they work with, and which ones they can’t, sets how wide that comparison really was.
- “How many lenders are on your panel, and how many did you actually compare for me?” The panel isn’t the whole market, and the number compared can be smaller than the number available.
- “What sort of lenders can’t you access?” This is one of MoneySmart’s own suggested questions, and it tells you where the panel stops (ASIC MoneySmart).
- “Is there a suitable option off your panel I should know about?” A cheaper loan the broker isn’t accredited for simply won’t appear in their comparison.
Is this loan actually right for me?
This is where the best-interests duty does its work, and where you make the broker show it.
- “Why is this loan in my best interests, over the others you looked at?” Best interests is the standard they must meet. Ask them to justify the pick against it (ASIC MoneySmart; see also ASIC RG 273).
- “Can you show me a couple more options, including the lowest-cost one?” Another of MoneySmart’s suggested questions, and the fastest way to see whether a cheaper suitable loan exists (ASIC MoneySmart).
- “What’s the rate, and how do the fees and features add up to the real cost?” The headline rate isn’t the whole cost. And with a deposit under 20%, you’ll usually pay LMI, which applies above 80% of the property’s value unless a guarantee or exemption applies (ASIC MoneySmart). The cost side is in what a broker actually costs you.
What happens to my application?
How your application is handled can touch your credit file and your timeline. The answers show whether it leaves an enquiry, and how the timing to settlement looks. Three worth asking before anything is lodged.
- “When will a credit enquiry be lodged, and with how many lenders?” Each application is recorded on your credit report, and too many in a short time can lower your score (ASIC MoneySmart). You want them lodged deliberately, not scattered across lenders.
- “Is this a pre-approval or just an indication, and what could still change it?” A pre-approval is a signal, not a commitment to lend. A valuation or a change in your finances can still move it.
- “What are the timings to approval and settlement, and who keeps me updated?” That way you’re not left guessing where the application sits, or chasing it.
Are they licensed, and what if it goes wrong?
Two quick checks close the loop: that the broker is who they say, and that you have somewhere to go if there’s a problem. Both take a minute to confirm, and both matter most when something has gone wrong.
- “Are you licensed, with an Australian Credit Licence, or acting as a representative of one?” A representative can be a registered credit representative, or an employee or director of a licensee. You can confirm it yourself: MoneySmart says to check the broker, or the licensee they work under, on ASIC’s Professional Registers before you meet (ASIC MoneySmart).
- “Do you have any ownership or commercial ties to a particular lender or aggregator?” This surfaces whether a lender-owned or aggregator relationship sits behind the recommendation.
- “If I have a complaint I can’t resolve with you, how do I escalate it?” A broker should be able to point you to AFCA, which gives free, independent dispute resolution (ASIC MoneySmart).
The five questions to reach for if you ask nothing else.
The bottom line for buyers
The best-interests duty is real, but it’s a floor. The duty does the legal work; your questions are how you check it’s been met. Cover the five areas: how they’re paid, which lenders they compared, why this loan, what happens to your application, and whether they’re licensed. Prepare first so you can judge the answers, and take the list with you.
Knowing what a good answer sounds like, and the red flags to watch for, is the next step: how to choose a broker.
Get your income, deposit and goals organised with knest.ai’s free AI assistant, and see the factors a lender weighs. Then you can walk into a broker able to judge the answers, not just take them on trust.
Ask knest.aiFrequently asked questions
What questions should I ask a mortgage broker?
Cover five areas. First, pay: how they’re paid and whether any fee falls to you. Then panel and fit: which lenders they compared, why this loan won, and whether a cheaper suitable option exists. Then process and credentials: when a credit enquiry is lodged, and whether they’re licensed. ASIC’s MoneySmart publishes its own version of this list.
What should I ask about how a mortgage broker is paid?
Ask how they’re paid and whether the commission differs between the lenders they compared, since different lenders pay different rates (ASIC MoneySmart). Also ask whether any fee comes from you, which can only be charged under a written quote you sign first.
How do I know if a mortgage broker is any good?
The best-interests duty means the loan they recommend must be in your best interests, not merely one you could service, so make them show their work. Ask why the loan is in your best interests, which lenders they compared, and for a couple more options including the lowest-cost one. Weighing those answers, and the red flags, is covered in a separate guide on choosing a broker.
How do I check my mortgage broker is licensed?
They must hold an Australian Credit Licence, or act as a representative of one: a registered credit representative, or an employee or director of a licensee. According to ASIC’s MoneySmart, you can check before you meet by searching ASIC’s Professional Registers for the Credit Licensee and Credit Representative lists, or by asking which licensee an employee works under.
What if I have a problem with my mortgage broker?
Raise it with them first. If you can’t resolve it, ASIC’s MoneySmart says you can contact the Australian Financial Complaints Authority (AFCA) for free, independent dispute resolution.
Sources
- ASIC MoneySmart, “Using a mortgage broker” (incl. “Questions to ask your mortgage broker”, checking a licence, and AFCA), updated 4 September 2026, retrieved 2026-09-14, https://moneysmart.gov.au/home-loans/using-a-mortgage-broker
- ASIC, “Professional registers search” (Credit Licensee and Credit Representative registers), retrieved 2026-09-14, https://www.asic.gov.au/online-services/search-asic-registers/professional-registers-search
- ASIC, Regulatory Guide 273 “Mortgage brokers: Best interests duty” (issued 24 June 2020), retrieved 2026-09-14, https://asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-273-mortgage-brokers-best-interests-duty/
- Australian Financial Complaints Authority (AFCA), “Credit, finance and loan complaints”, retrieved 2026-09-14, https://www.afca.org.au/make-a-complaint/credit-finance-and-loan-complaints
- ASIC MoneySmart, “Credit scores and credit reports”, retrieved 2026-09-14, https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports
- Federal Register of Legislation, National Consumer Credit Protection Regulations 2010, reg 28VG “Clawback requirements” (current compilation), retrieved 2026-09-14, https://www.legislation.gov.au/F2010L00631/latest/text
Eleanor Hayes, Editor, knest.ai
This article is general information for Australian home buyers, not personal financial or credit advice. knest.ai is a buyer-focused property intelligence platform that provides decision support, not a broker or lender service, and does not replace a licensed mortgage broker or lender. Any broker introduction through the Home Loan Expert is buyer-initiated and never automatic. Where knest.ai receives a benefit from such an introduction, that benefit is disclosed to you. Verify any figures for your own circumstances before you act.
Recommended for you
How to Choose a Mortgage Broker (and the Red Flags to Avoid)
Do First-Home Buyers Need a Mortgage Broker?
Do You Pay a Mortgage Broker? Fees & Costs
Mortgage Broker vs Bank: Which Is Right for You?
How Do Mortgage Brokers Get Paid in Australia?
What Does a Mortgage Broker Actually Do? A Buyer's Guide (2026)