Car Loans Australia
Private & Commercial Car Loans for New & Used Vehicles
Car Loans Australia :: Articles

Choosing a Home Loan Mortgage Broker

What should I consider when choosing a mortgage broker for my home loan?

Choosing a Home Loan Mortgage Broker

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

There are a number of potential pitfalls in relying on a mortgage broker for the best home loan solution ... particularly given the enormous growth in the broking industry and the recent entrance of new players.
Getting a broker to arrange your loan can certainly save a lot of time and hassle, but borrowers still have to do their homework to ensure the service they expect is the one that's delivered. 
Obtaining genuinely objective recommendations from brokers, confusion over just who's a lender and who's a broker and lender delays in processing applications mean that using a broker is not always the quick and easy solution to home borrowing it may at first appear.
With the proportion of loans arranged through brokers rising from nowhere to around 30 percent in just a few years, the industry has attracted all manner of people and organisations wanting to enter this lucrative commission-based industry.
Establishing that any broker you intend to use has experience and qualifications as well as being committed to the industry code of practice is vital to ensure you're getting the best loan for your needs, within a reasonable timeframe.
A number of lenders are also now acting as brokers and some borrowers may be confused over whether they're dealing with an independent broker offering a range of loans, an agent for one lender only, or someone who wears both hats. 
Borrowers must establish with any loan representative just what their role is and how they're being paid so they can judge the integrity of loan recommendations being provided.
Once a broker is found and a loan recommended, some lenders have had difficulty coping with the volume of loans coming through the broker channel leading to delays lasting weeks.
This can be a major concern for those home buyers who have little time to arrange loan finance upon purchase.

The 12 things you must know before obtaining your home loan through a broker:

  • A broker should have a wide range of home loans from a wide variety of lenders, eg. banks, and non-banks. The wider the choice, the better the chance of finding the loan that suits you best.
  • Check the qualifications and experience of your broker, even ask for references from previous borrowers. Are they an MIAA member? Have they completed training courses?
  • Ensure your broker is not an agent for one lender in disguise. Some lenders now operate as brokers too so establish with any broker representative exactly what their role is.
  • Make sure your broker discloses all commission and payments received so you can judge whether a particular loan recommendation is being influenced by how much the broker will be paid.
  • Does the broker charge a fee? Many brokers will not charge borrowers for using their service, others will, so enquire about fees at the outset
  • Ask your broker how the loans they offer are researched and rated. Good brokers should be able to clearly outline their criteria
  • Ask your broker to provide a formal comparison of any loans recommended including the upfront and ongoing fees and the AAPR (average annual percentage rates). Ensure the AAPR is calculated specifically for the amount you want to borrow.
  • Always do some double-checking yourself to satisfy yourself you've been given unbiased and correct information.
  • Check what service is offered by the broker after the loan is negotiated. Will the broker be available for subsequent loan enquiries? What happens if there is a dispute between you and the lender?
  • Will your broker comply with the Privacy Act to ensure the security of your personal and financial details?
  • Your broker should have professional indemnity insurance. This safeguard will help you in the event of legal action.
  • As a last resort, the independent Mortgage Industry Ombudsman Scheme (1800 138 422) is available if there is a dispute you can’t resolve with your broker directly.

Published: Sunday, 1st Aug 2021
Author: Paige Estritori

Rate this article

Sign in with Google to rate

0 Comments

No comments yet. Be the first to share your thoughts.


Car Loans Articles

Consumer Protections and Legal Obligations for Car Loans in Australia
Consumer Protections and Legal Obligations for Car Loans in Australia
Car loans in Australia are subject to consumer credit laws, disclosure rules and dispute resolution pathways. This guide explains key protections, lender and broker obligations, borrower responsibilities, comparison rates, hardship rights and what to check before signing a finance contract. - read more
How to Compare Car Loans: A Step-by-Step Guide for Australian Buyers
How to Compare Car Loans: A Step-by-Step Guide for Australian Buyers
When planning to take out a car loan, it is crucial to start by understanding your budget. Consider how much you can realistically afford to borrow without straining your finances. Assessing your monthly income and expenses will help you arrive at a sensible figure, ensuring you don't overcommit. - read more
How Credit History Affects Car Loan Approval in Australia
How Credit History Affects Car Loan Approval in Australia
Your credit history can influence whether a lender considers your car loan application, the rate you are offered and the conditions attached to the loan. This guide explains what Australian lenders may look for, how impaired or limited credit history can affect an application, and how to prepare before applying. - read more
Balloon Payments and Residual Values in Car Loans Explained
Balloon Payments and Residual Values in Car Loans Explained
Balloon payments and residual values can make car loan repayments look more manageable, but they also create an important end-of-term obligation. This guide explains how they work in Australia, how they affect total borrowing costs, and what to check before choosing this type of loan structure. - read more
From Fuel to Finance: A Comprehensive Breakdown of Car Costs
From Fuel to Finance: A Comprehensive Breakdown of Car Costs
When it comes to owning a car in Australia, many of us view it as a symbol of freedom, an essential convenience, or even a reflection of our personal style. Yet, for all the road trips planned and errands run, the cost of owning a car extends well beyond the sticker price. - read more

Finance News

What ASIC’s Car Loan Review Means for Australian Buyers
What ASIC’s Car Loan Review Means for Australian Buyers
23 Jul 2026: Paige Estritori
Australia’s car finance market is sending buyers two important messages at once. Recent July rate snapshots show some secured car loans advertised from around the mid-five per cent range for strong-credit borrowers, suggesting competition is still alive for well-prepared applicants. At the same time, ASIC’s 24 June 2026 review of motor vehicle finance has put the spotlight on fees, third-party sales channels and borrower outcomes. - read more
What July's Cheapest Car Loan Rates Mean for Australian Buyers
What July's Cheapest Car Loan Rates Mean for Australian Buyers
16 Jul 2026: Paige Estritori
Australian car buyers have a fresh benchmark for what a competitive loan may look like, with Canstar's July 2026 car loan snapshot showing some secured new and near-new car loans advertised from the high five per cent range. For households already juggling fuel, insurance, registration and cost-of-living pressures, that headline number may look appealing. - read more
Luxury Car Tax Thresholds Rise for 2026–27: What It Means for Your Next Car Loan
Luxury Car Tax Thresholds Rise for 2026–27: What It Means for Your Next Car Loan
02 Jul 2026: Paige Estritori
Australian buyers shopping for a higher-priced new car have a fresh number to factor into their budget from 1 July 2026, with the Luxury Car Tax thresholds indexed for the 2026–27 financial year. - read more
What the 2026 Car Loan Awards Mean for Australian Buyers
What the 2026 Car Loan Awards Mean for Australian Buyers
25 Jun 2026: Paige Estritori
The latest 2026 personal and car loan awards from Mozo point to a clear message for Australian motorists: the lowest-cost car finance may not come from the lender you already bank with. The awards assessed hundreds of personal and vehicle loan products across dozens of lenders, with categories covering new car loans, used car loans, secured personal loans, excellent-credit borrowers and green car finance. - read more
RBA Maintains Cash Rate at 4.35% in June 2026 Decision
RBA Maintains Cash Rate at 4.35% in June 2026 Decision
11 Jun 2026: Paige Estritori
In its June 2026 meeting, the Reserve Bank of Australia (RBA) decided to hold the cash rate steady at 4.35%. This unanimous decision reflects the central bank's cautious approach amid ongoing economic uncertainties and inflationary pressures. - read more
Click for more Finance News

Need Help Finding a Loan?
Get a free car loan eligibility assessment and compare offers tailored specifically to your circumstances.

Let's help find your car loan!

Loan Amount:

Postcode:

All quotes are provided obligation-free by a participating broker from our national referral partner network. We respect your Privacy.

All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Loan Origination Fee:
A fee charged by a lender for processing a new loan application, typically expressed as a percentage of the loan amount.


This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.
IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.