How Do I Know if a Mortgage Broker is Legit?
With so many mortgage brokers in Australia, how do you know the one you’re working with is legitimate and licensed? Here are a few guidelines.
Are They Licensed?
Your mortgage broker needs to have an Australian Credit License (ACL). If they have this license, they must operate under the National Consumer Credit Protection Act, meaning they must recommend products in your best interest based on your current financial situation. Your broker can either have their own license or be authorised under the license of their aggregator. You can check to see if they are licensed and qualified by:
- By calling the ASIC hotline or using their ASIC Connect’s Professional Registers
- Asking for a copy of their Certificate IV in Financial Services (Mortgage and Finance), which is the minimum requirement they must have
- Ensuring they’re registered with an ASIC-approved dispute resolution scheme, such as the AFCA
- Finding out if they’re a member of the MIAA, MFAA, or FBAA
Ask Them Questions
Asking lots of questions is the best way for you to gauge their knowledge of the mortgage process. You can use these questions as a guideline:
- Do you offer loans from a variety of lenders? What kind of lenders don’t you work with? Which ones do you work with?
- How do you get paid? Do lenders pay you differently?
- Why are you recommending this loan to me? How is this loan in my best interests?
- Do I have to pay fees? If so, what kind, and why?
- What features does this loan offer me? And how do the fees and features impact the cost of the loan?
- Are there other, cheaper options you can show me?
If you are looking for a reputable mortgage broker, contact Mortgage House. Our brokers are fully licensed and have the expertise to help you find a competitive home loan that works for you.