Five Tips to Ensure your Mortgage Broker is Working in Your Interests

Graeme Salt

An article I read the other day, prompted me to review how I arrange home loans for clients.


In the article, a financial planner was critical of those planners who are representatives of large financial services companies (mainly banks). This financial planner believed that the planners who were representatives of these larger companies were often not recommending the products that were in the client’s best interest – but were in the interest of the ‘parent’ company.


I am not qualified to talk about the rights and wrongs of financial planning. But i thought this deserved another look.


 I am accredited with about 30 different lenders. But, ultimately, I have a commercial relationship with NAB. So, I decided to check with which bank I had written most loans. After adding up the loan balances on the Origin Finance Inner West book, I was pleasantly surprised to find that the biggest lender on my books is actually ANZ. I would have arranged these loans because they are in the clients’ best interest.


One of the good things about mortgage broking is that we have to really transparent rules and practices about the suitability of the loans we arrange. For example, we must declare:

• the commission we will receive from a bank for arranging the loan

• that there is no conflict of interest in making a specific loan recommendation

• names of the main lenders with whom we most frequently arrange loans

 • the suitability of the loan recommended to the client


But there are also questions the client can ask to ensure that the broker is thinking about the client:

1. How long have you been broking (this should determine how well they really know what options are available to you)

2. Which lenders are you accredited with 3. Which lenders do you mainly use (and why)

4. How much commission would you receive if I went with another bank

5. Why don’t we just go with the cheapest option (your broker may recommend a bank which is quick in processing your application, or has a product that suits your needs better)


Graeme Salt is a Sydney-based mortgage broker.  He can be contacted on 02 9922 5055