Mortgage brokers. They’re like the matchmakers of the home buying world — the link between YOU and the lender. 

And they’re pretty important, because they ultimately help you get the home loan and repayments that suit your particular needs. 

So, if you’re scratching your head over how to choose a mortgage broker, start by researching their experience, processes, client reviews and additional services (hint: not all brokers are created equal). 

Buuut before we dive deeper into the 9 things you should look for before choosing a broker, let’s quickly recap what they *actually* do, why they’re useful, and how they’re different from a bank.

(Oh, and now’s probably a good time to mention that we’re a team of mortgage brokers, so we might add in the occasional flex). 

What a mortgage broker does (and why they’re pretty handy) 

A mortgage broker is sort of like your *everything* person. They’ll help you through the entire home buying or refinancing process (ok, maybe not the entire process, they won’t help you bid at an auction, move your furniture or feed your hamster). But they *will* identify your needs, compare loan options, and do the back-and-forth with your chosen lender. They’ll also help you sort through paperwork and guide you through to settlement and beyond.

In fact, more than 70% of new Australian home loans are set up via mortgage brokers as they make your life a whole lot easier.* 

As for the pros of working with a broker? There are plenty.

  • Brokers put *your* best interests first (in fact, they’re legally obliged to). 
  • Most brokers have access to a wide range of lenders and products (at Finspo, we’ve got connections with 30+ lenders). It would be tough to compare that many if you were to go at it alone. 
  • Home loans are a broker’s bread and butter, so they’ve got a whole lot of expertise and market intel to apply to your unique situation, allowing you to make an informed decision. 
  • They’ve been around the block a few times, so they’ll guide you through the process (especially if it’s your first time). 
  • Brokers work directly with your lender (so you don’t have to). 
  • They’ll help you pull together the documents you need to prove things like your identity and income (because who likes sifting through paperwork alone?) 
  • It’s often a free service – with Finspo it is anyway!

What’s the difference between a mortgage broker and a bank? 

Broker? Bank? They’re not the same thing. 

Essentially, banks are lenders. They’re the ones who lend you the cash money so you can buy your home. You may choose to work directly with a lender, but if you do, you’ll have to be prepared to do some of the heavy lifting alone… things like negotiating, comparing lenders and exploring options.

On the flip side, you can work with a broker who does all the heavy lifting for you. This is great if you value expert advice and you’d like someone to guide you through the whole process, from handling paperwork to comparing apples with oranges and presenting you with a bunch of expert options.

So now we know they’re different, let’s look at how to find a good mortgage broker. 

How to choose a mortgage broker – 9 things to look for before you make the call

How do you know if a mortgage broker’s legit? Reputable? Easy to work with? 

A little research, of course. 

So here are 9 things to look for in a mortgage broker (you can find these out by doing your own research or asking them straight up).  

1. Do they have past reviews?

Customer testimonials don’t lie. Check out their past reviews to see what kind of words people use to describe them. Were they friendly? Reliable? Supportive? Responsive?

Remember, any broker will work to find you the best deal. But in our (perhaps biased) opinion, a good broker will listen to what you need, give you great options and walk you through the process… keeping you in the loop along the way. 

2. What’s their experience?

Whether you’re dealing with a company or an individual, experience matters. Start by finding out what their education and experience looks like — have they been around the block a few times? 

But it’s not just broking experience we’re talking about. You can find out *other* valuable attributes, for example, previously working for a bank means they’ll likely know the rules of the game (hint: our founders were once high up in the big banks but wanted to break away to help people do better with their money). 

3. How many lenders do they have relationships with? 

The more relationships a broker has, the better, as it means you’ll be getting more options to choose from. In saying that, *most* brokers generally have a set panel of around 30+ lenders.

4. Are they independent brokers or owned by the banks?

Not all brokers are independent. Yep, some are part-owned by the big banks.

If that sounds a little funky to you, you’re not alone.

Now it’s time for a shameless flex: Finspo is independently owned and managed, which means we work for you. 

5. How are they paid?

Most mortgage brokers are paid by the banks (not you, phew). This means you don’t need to fork out a cent to get the guidance of a broker. 

Oh, and just because a broker gets paid by the banks doesn’t mean they work for them. There’s a difference. Brokers must still work in your best interests and find you the right loan for your situation. 

6. How does their process work?

The process can vary slightly between brokers, and that’s ok. What you really want to make sure of is that they’re with you — every step of the way. 

On top of that, it’s important they’re up-front about the process from the get-go (because nobody wants to be left wondering what happens next). 

Do they offer a first meeting so they can truly get to know YOU and YOUR goals?

Will they walk you through the pre-approval process?

Once you’ve found a property, can they give you guidance on when to engage the other experts (like conveyancers and building inspectors)? 

A good broker will make the home loan process a walk in the park. 

Check out how Finspo works in 60 secs here…

7. Do they help you *after* you get the loan?

Once you’ve been approved for a loan, will they be there for you all the way to settlement and beyond? What about when your rate changes or better deals become available? Will they let you know and help you make the next move? Or will they get their money and say see ya later? 

Once again, a good way to find this out is by looking at past reviews. You can also ask them straight up whether they’ll help you after your loan is approved and listen carefully to their response.  

8. Do they offer any additional services?

All brokers will get you a home loan. But often, it’s the added extras that make all the difference to the process. 

Will they give you regular updates on rate changes? 

Will they help you with repricing your loan? 

Do they have calculators and tools to make things easy? 

*cough* Finspo does *cough*

9. Have they won any awards?

Ok, awards aren’t the be-all and end-all (there are some good brokers out there that might not have won any). 

Buuuut, winning an award is a clear sign they run a good business and value looking after their customers. 

Shameless flex: Finspo was recently recognised as the fastest-growing brokerage in Australia. We’re pretty proud of it. 

Once you’ve put a broker to the test using these 9 points (and they’ve passed with flying colours) it’s time to get the ball rolling. 

Want to know what getting started with a broker will be like? We’ve got you. 

Find out… 

*Data released by research group Comparator, a CoreLogic business, and commissioned by the Mortgage & Finance Association of Australia (MFAA). Period is July 2022 – September 2022