How to choose a mortgage broker in Melbourne

First, check they are actually licensed

Every credit provider and broker in Australia must either hold an Australian Credit Licence or be an authorised Credit Representative of someone who does. You can look up any licence or representative number on ASIC Connect, free, in about a minute. A broker who cannot give you their number without hunting for it is a bad sign on its own.

Shaheera is Credit Representative CA56706 under Australian Credit Licence 389328, if you would like to try it.

Ask how many lenders they work with, then ask a better question

Panel size gets quoted a lot because it is easy to quote. Most established brokers sit somewhere between 30 and 60 lenders, and past a certain point the number stops meaning much: nobody is placing loans with all sixty.

The more useful question is: which lenders suit someone in my situation, and why? A broker who answers that with specifics knows their policy. A broker who answers with "we compare them all" has told you nothing.

Understand how they get paid

Brokers are paid a commission by the lender when your loan settles, which is why the service is free to you. Under the best interests duty introduced in 2021, brokers are legally required to act in your interest rather than the lender's, and commission structures were reformed at the same time so that the size of the loan does not quietly reward a broker for pushing you higher.

You are entitled to ask a broker to explain how they are paid. Any broker worth using will answer plainly.

Find out who reads your file, and how well

This is the question almost nobody asks, and it matters more than the panel size. Loan applications are assessed by a credit team at the lender, working to a policy document you never see. A broker who has worked inside that process knows what will trip it up. One who has not is guessing, politely.

Worth asking: what is their background, how long have they been doing this, and have they placed a file like yours before? If your income includes overtime, commission, shift penalties, contract work or a business you own, that experience is the difference between an approval and a decline.

Warning signs

Be wary of anyone who guarantees approval before seeing your documents, quotes you a rate before knowing your situation, pressures you toward one specific lender without explaining why, is vague about fees or commission, or cannot produce a credit licence number. None of those are style differences. They are all reasons to keep looking.

Reviews are useful, with a caveat

Read the reviews, but read what they actually describe. Reviews that mention a specific problem the broker solved are worth ten that say "great service". Also notice whether the broker themselves is making claims their reviews do not support: "Melbourne's best broker" is not a fact anyone can prove, and a business willing to say it about themselves may be willing to stretch other things too.

Meet them before you commit

A first conversation with a broker should cost you nothing and commit you to nothing. Use it to find out whether they explain things in a way you follow, and whether they are willing to tell you something you did not want to hear. A broker who says "you would be better off waiting six months and here is why" is more valuable than one who says yes to everything.

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If you would like to test this on us

Every question above is fair game. Shaheera spent more than 20 years in lending at ANZ before starting Exceed Finance, works with 35+ lenders, and will give you a straight answer about where you stand at no cost. There is more on the background and how it changes an application on the Why Exceed Finance page.