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Which Mortgage Broker Should I Use?

Not all brokers are equal. Here's what to look for, what to ask, and the red flags that should send you elsewhere.

A mortgage broker acts as an intermediary between you and a range of lenders. Rather than going directly to a single bank, a broker can compare products across multiple lenders to find one that suits your specific situation. In theory, this saves you time and can get you a better rate or a product that fits your circumstances more precisely. In practice, the quality of brokers varies enormously, and choosing the wrong one can cost you significantly more than any difference between lenders would ever save.

The other thing buyers often do not realise is how important finance is to your position as a buyer in a competitive market. Having your pre-approval genuinely sorted, not just a quick online estimate but formal written approval from a lender who has assessed your full financial position, puts you in a fundamentally different position when you are ready to make an offer or bid at auction. A good broker makes this happen efficiently and well before you need it.

What to look for

The most important thing to look for is genuine independence. A good broker should have access to a wide panel of lenders and should not be steered towards particular products by internal incentives, volume bonuses, or ownership arrangements with specific lenders. Ask directly how many lenders they have on their panel. A well-established broker should have access to at least 20 to 30 lenders, including the major banks, second-tier lenders, non-bank lenders, and credit unions. A broker with a limited panel, say five or six lenders, may not be able to find the most competitive option for your circumstances even if they want to.

Accreditation matters and is not optional. All mortgage brokers in Australia must hold an Australian Credit Licence (ACL) or operate as a credit representative under one. They must also be members of either the Mortgage and Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA), and they are required to complete ongoing professional development. You can verify a broker's licence status through the ASIC Connect register, which is publicly accessible. If a broker is not on the register, walk away immediately.

The pre-approval process: what it actually involves

A genuine pre-approval requires a full assessment of your financial position. This means providing payslips or tax returns, bank statements, details of all existing debts and liabilities, identification, and a complete picture of your income and expenses. The lender reviews this information and provides written conditional approval for a loan up to a specified amount, subject to a satisfactory valuation of the property you eventually purchase.

This is meaningfully different from a pre-qualification, which is simply an estimate based on numbers you have provided without any verification. Some brokers use the terms interchangeably, which creates a false sense of certainty. If you tell a selling agent you have pre-approval and it turns out to be a pre-qualification, you may find yourself unable to proceed when it counts. Ask your broker specifically: has this been formally assessed by the lender, and do I have written confirmation of the approved amount?

Pre-approvals in Queensland typically have a validity period of 90 days, though some lenders vary. If you are actively searching in Brisbane's inner east and have been looking for several months, check that your pre-approval has not expired before you make an offer or register for an auction. An expired pre-approval is not a current one.

Questions to ask before you commit

Before engaging a broker, ask: How many lenders are on your panel? Are you paid differently depending on which lender I choose? Have you arranged finance for buyers in my specific situation before (self-employed, contractor, new to Australia, etc.)? How long does your approval process typically take, and what can slow it down? What happens if my application is declined by the first lender? A good broker will answer all of these directly and without hesitation. If you get evasive answers, vague reassurances, or a strong push towards a particular product before the broker has properly understood your situation, treat that as a warning sign.

Red flags to watch for

Be cautious of brokers who push you towards a product quickly without properly understanding your full financial position. Be cautious of brokers who cannot clearly explain how they are paid, including the upfront commission and any trail commission they receive from the lender. Be cautious of brokers with a very limited lender panel, of brokers who have no verifiable track record in your price range, and of brokers who make the approval process sound simpler and faster than it is.

Also be cautious of anyone who suggests that a 10-minute online enquiry constitutes meaningful pre-approval. A real pre-approval involves document collection, assessment time, and written confirmation from the lender itself. It takes days, not minutes. If someone is telling you otherwise, they are either cutting corners or misrepresenting what they have done.

Going direct to your bank vs using a broker

For straightforward borrowers with stable PAYG employment, clean credit history, and a standard residential property purchase, going directly to your existing bank can sometimes be competitive, particularly if you have a long-standing relationship with them or significant deposits held there. Banks will sometimes negotiate on rate to retain good customers.

For self-employed buyers, those with irregular income structures, buyers who have recently changed employment, or first home buyers navigating grants and concessions, a good broker adds genuine value. They understand which lenders are most receptive to certain income types, which lenders will consider overtime and bonus income differently, and which lenders will be faster to issue formal approval. The key is finding a broker who is genuinely working in your interest, not towards the commission outcome that best suits them.

Timing your finance relative to your search

In Brisbane's inner-east market, good properties move quickly. A well-presented family home in Camp Hill or Morningside that is priced correctly can generate multiple offers in the first week of its campaign. If your finance is not sorted when that property becomes available, you will miss it. The right time to engage a broker and get your pre-approval in place is before you start seriously attending inspections, not when you find a property you want to buy. Ideally, you should have written pre-approval in hand before your first open home.