A Checklist for Buyers Using a Mortgage Broker

A mortgage broker can save you a considerable amount of time by comparing loan products across multiple lenders and managing much of the paperwork on your behalf. But the relationship works best when you understand what the broker is doing, ask the right questions early, and stay organised on your side of the process. This checklist covers what to confirm before you commit to a broker and how to keep your purchase on track once finance is underway.

Confirm Accreditation and How They Are Paid

Mortgage brokers in Australia must hold an Australian Credit Licence or operate as an authorised credit representative under one. Ask directly whether they are licensed or authorised, and request their credit representative number if relevant. Brokers are generally paid commission by the lender rather than a fee from you, but ask them to explain this clearly, including whether any lender pays them more than others, since this can occasionally influence which loans are presented to you.

Ask How Many Lenders They Have Access To

Some brokers work from a large panel of lenders, while others have a narrower list, sometimes tied to a particular aggregator or franchise. Ask how many lenders are on their panel and whether that includes both major banks and smaller lenders, since a wider panel generally means a more genuine comparison. If you already bank with a particular institution or have a preference for a certain type of lender, mention this early so it factors into their recommendations.

It is also reasonable to ask whether the broker has previously arranged finance for the type of property or purchase you are planning, such as an off-the-plan purchase or a purchase involving a guarantor. Some lenders apply different assessment criteria to these situations, and a broker with relevant experience is more likely to steer you towards a lender whose policies actually suit your circumstances rather than a generic recommendation.

Provide Complete Financial Information Upfront

• Recent payslips or, if self-employed, tax returns and financial statements for the last two years.
• Bank statements covering at least the last three to six months across all accounts.
• Details of existing debts, including credit cards, car loans, personal loans and any other mortgages.
• Evidence of savings history and the source of your deposit, including any gift or family contribution.
• Details of any dependents, ongoing expenses and other financial commitments the lender will assess.

Being upfront and complete with this information from the start avoids delays later, since lenders will often come back with follow-up questions if anything looks incomplete or inconsistent, which can slow down approval at exactly the point you need it to move quickly.

Understand the Difference Between Pre-Approval and Unconditional Approval

Pre-approval, sometimes called conditional approval, gives you an indication of what you can likely borrow, but it is not a guarantee. Unconditional approval, which happens after the lender has assessed the specific property you want to buy along with a valuation, is what actually allows you to proceed to settlement with confidence. Ask your broker to explain clearly where you sit in this process at each stage, particularly before you make an offer or bid at auction, since auction purchases generally require finance to be unconditional before you can bid.

Compare What the Broker Recommends Against the Market

It is reasonable to do some of your own research alongside your broker's recommendations, using resources such as MoneySmart's guide to using a mortgage broker, which explains what brokers can and cannot do and how their remuneration typically works. Ask your broker to explain why a particular loan is being recommended over alternatives, including the interest rate type, any offset or redraw features, and the total cost over the life of the loan rather than just the headline rate.

Keep Your Conveyancer and Broker in the Loop With Each Other

Your broker and conveyancer are working towards the same settlement date but rarely communicate directly unless you prompt them to. Share your broker's contact details with your conveyancer once you have signed a contract for a residential purchase, so your conveyancer can confirm finance approval timing and chase up loan documents if a deadline is approaching. This is particularly important if your contract has a finance clause with a set date, since missing it without an approved extension can put your deposit at risk.

Confirm Settlement Timing With Your Lender

Once your loan is approved, ask your broker to confirm the lender's expected timeframe for preparing loan documents and being ready to fund settlement. Lenders vary in how quickly they can turn around final approval and document signing, and a lender that is slow at this stage can hold up an otherwise straightforward settlement. If you are also managing a refinance alongside your purchase, flag this early, since discharging one loan while settling another adds extra coordination that your broker and conveyancer both need to be aware of.

What to Do if Something Feels Wrong

If a broker is difficult to reach, unclear about fees or commissions, or pushes you towards a loan without explaining why, it is reasonable to seek a second opinion or change broker. Trust your instincts if something feels rushed, particularly around the point where you are asked to sign loan documents, since a good broker will always give you time to read and understand what you are agreeing to rather than pressuring you to move quickly. This is general information rather than personal financial advice, so if you are unsure whether a particular loan structure suits your situation, it is worth raising your specific circumstances directly with your broker or an independent financial adviser before signing anything.