Choosing a mortgage broker

Before you decide on a mortgage broker, use this checklist to ensure you make an informed decision.

Which lenders and loan products do they have access to?

The larger and more varied the array of lenders and the number of loan products, the more likely you are to find the most suitable loan for you. Make sure the mortgage broker can offer loan products from at least 15 different institutions.

How do they get paid?

Most mortgage brokers are paid by the lender in the form of a commission. Be aware that some lenders pay larger commissions than others so it’s a good idea to ask the mortgage broker to disclose what commission they will be paid on the loan products they recommend.

What fees (if any) do they charge?

Most mortgage brokers do not charge a fee for their service as they receive a fee or commission from the lender.

What is their role?

Ask the mortgage broker to explain their exact role or job description to you. You want to ensure they are not a lender offering only their own mortgage products.

How do they determine which loan is best for a client?

A good mortgage broker should be able to provide you with a clear explanation of the methodology and criteria they use to evaluate a loan product.

What are their qualifications?

Ask your broker for proof of their qualifications and their experience. You may even like to ask for references from previous clients.

Do they have professional indemnity insurance?

It’s important to ensure a mortgage broker has insurance as if you have to take legal action against them their insurance will pay.