Google “mortgage broker” and you’ll get more results than you know what to do with. It’s a pretty competitive area with a lot of home loans these days done through mortgage brokers. The Australian industry is one of the world’s most sophisticated, competitive and innovative. It’s also one of the safest since the Australian Securities and Investment Commission (ASIC) introduced new uniform consumer credit laws.

Mortgage brokers get paid a percentage of the loan amount – typically 0.5–1% and don’t be afraid to ask how much yours gets. The advantage of using a mortgage broker is that they can shop around among lenders for the best deal. Yours should have at least 12 to 15 lenders to choose from ranging in size from big banks to credit unions and building societies. Mortgage brokers will also help you fill out the mountains of paper work and if you have credit problems or want a mortgage on an unusual property they can match you up with the right people.

As with anything, you can save a lot of money shopping around and comparing. So when interviewing a broker, and yes it can be called an interview, here’s a few probing questions to help you along.

1. What are your service standards, training and accreditation levels?
2. How much experience do you have?
3. What’s your commission?
4. What range of lenders and products do you have?
5. Do you offer your own products? If so, what sets them apart?
6. Do you have a Finance Broking Agreement or Customer Charter outlining dispute resolution, service levels and commissions policy?
7. Do you receive the same commission rate regardless of lender or product chosen?
8. How many lenders do you have access to?
9. Do you get any alternative forms of remuneration and any referral fees paid for introducing customers like me to other businesses?
10. Have you looked at my ability to repay a home loan?
11. Will you give me a written comparison of home loan options outlining all fees?