With more Australians than ever before shunning banks in favour of a mortgage broker to help with residential loans, clients have never been so spoilt for choice. Here’s how to choose a mortgage broker in Australia. 

According to a report by Deloitte, more than 55 per cent of residential loans were settled by mortgage brokers in the September quarter of 2017, and 90 per cent of customers were satisfied with services provided. 

Whether you are buying your first home, refinancing or purchasing an investment property it is important to find a broker who is aligned with your financial goals.  

Sebastian Mantello founded Melbourne-based Integrity Finance Brokers to do the hard work for people looking for a residential loan, or refinancing.  

“The biggest lacks people have are time, knowledge or interest, so we fix that problem for you,” he says.  

1. Check their accreditation and experience

Ensure your broker is accredited with professional industry bodies such as the Mortgage & Finance Association of Australia (MFAA) or the Finance Brokers Association of Australia (FBAA). This ensures they adhere to strict codes of conduct and receive ongoing training.  

Experience also counts: Deloitte reports that the average Australian broker has 13.8 years industry experience. Opt for a broker who has been in the industry for several years. 

2. Ensure they work with a variety of lenders

A broker's value comes from their ability to compare loans across multiple lenders. The more lenders on their panel, the more options they can assess to find you a competitive deal.  

“We don’t fall into the trap of only working with banks we like,” says Sebastian. “We work with all the banks to get you the best deal. 

“Big lenders don’t have personal relationships with clients anymore. You could have banked with them since you were a child, but if you don’t tick a box at age 40 to get a loan they don’t care.” 

3. Communication matters

Clear, consistent communication is essential when securing a mortgage. Look for brokers who take the time to understand your specific needs, explain complex terms in simple language, and keep you updated throughout the entire process. “Anything too complicated should be a red flag,” Sebastian explains. “It should be simple.”  

4. Are they upfront about fees?

Did you know that it is actually free for you to work with a mortgage broker? All brokers receive commissions from lenders, but some brokers still may charge client service fees. Choose a broker who is upfront about their fee structures from the start to avoid any surprises down the track. 

5. Are they well-connected?

A well-connected mortgage broker is a valuable asset in the competitive Australian real estate market. Brokers with strong relationships within the industry, such as real estate agents, property developers, and legal professionals, may have access to off-market opportunities or other information that could give you an edge. 

Remember: mortgage brokers are in the service business - you should be more than just transaction. 

6. Is there a variety of loan options?

Different borrowers have different needs when it comes to loan types. Your broker should be experienced across various loan products such as investor loans, construction loans, and low-doc loans to cater for your unique situation. 

“We sit down with clients to discover what they could afford every month in terms of mortgage repayments and reverse engineer a loan,” says Sebastian. 

7. Asks about your financial situation

The best mortgage brokers ask comprehensive questions regarding your entire financial circumstances. This should extend beyond just the property purchase to include income sources, existing debts and assets, credit history, future plans and goals.  

With a fully formed picture of your financial situation, the broker can make more informed recommendations that factor in your entire economic situation - not just securing a home loan. A broker who takes a holistic view can advise on budgeting, debt consolidation or wealth creation strategies.  

This approach ensures the mortgage solution fits into your broader financial plan. “The best thing for a client’s longevity is our longevity, so we make sure you’re ok in the long-term,” says Sebastian.

8. Are they available when you need them?

Buying residential property can involve tight timeframes, so you need a broker who is accessible and responsive. When you're trying to put in an offer, get pre-approved for a loan, or meet other deadlines, delays in responses could jeopardise the entire deal.  

According to Momentum Intelligence, nearly 60% of Australian mortgage brokers worked more than 50 hours per week, including evenings and weekends, to accommodate their clients' needs. Ask your broker if they are available outside of business hours, and the best way of contacting them. 

9. Read their reviews

Positive reviews and testimonials from satisfied clients are strong indicators that the broker prioritises customer satisfaction and goes the extra mile to ensure a positive experience.  

Look for client reviews that mention the broker's attention to detail, such as ensuring that all paperwork is accurate, or that highlight in-depth knowledge of the mortgage industry. 

Honest reviews reflect a broker’s commitment to providing excellent service throughout the mortgage journey. 

10. Assess their digital capabilities

A tech-savvy mortgage broker can streamline the loan application process and provide a more efficient and convenient experience. Ask your potential broker about which online tools, mobile apps, and digital platforms they use to facilitate document sharing, e-signatures, and real-time updates.  

A good broker is an efficient broker This can save you time and hassle, while ensuring a seamless mortgage process.