Choosing a good mortgage broker will usually be a advantage over attempting to find the most appropriate mortgage on your own. Like any service provider, choosing a mortgage broker should be undertaken with care and a good deal of research.

The following questions should be asked:

Are they a member of the MIAA?

Most large banks and financial institutions require their brokers to be accredited with the MIAA (Mortgage industry association of Australia). To be accredited a mortgage broker must meet certain criteria in regards to training and have certain insurances. If a mortgage broker is not a member, then it is probably best to seek one that is.

Has access to a wide range of lenders?

In order to get the full benefit of using a mortgage broker it is necessary for that broker to be able to research the best possible loan for the circumstances. By only having a panel of 2 or 3 lenders it restricts the available choice to the consumer and will almost certainly lead to the consumer not being presented with the best product in the market. It would be standard to have all of the big 4 Australian banks plus at least another 10 lenders ranging from regional banks to non conforming lenders.

Does the broker charge an upfront fee?

A reputable broker will not seek an upfront fee for a normal conforming, home loan lending product. If the broker asks for a fee before instigating any work it would be best to get a second opinion. It is illegal in NSW to seek a fee for conforming home loans. The only instances where a broker will generally ask a fee will be when dealing with commercial loans and some non conforming loans.

In summary, you should feel comfortable with the broker. They should give you reassurance that they know their product range well, are honest and give you confidence that they will get your home loan done properly. If you do not feel comfortable seek another broker. Your first visit should be obligation free.