What Questions Should I Ask a Mortgage Broker at My First Meeting?
Most people open with “what is your best rate?” It is close to the least useful question you can ask, because a low rate is worth nothing if the lender declines you. Here are ten questions that actually tell you something, and what a good answer to each one sounds like.
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The short answer
At a first meeting, ask about realistic borrowing capacity, the deposit needed for your property type, how the broker is paid and whether any fee applies to you, how many lenders they compare and why they would recommend one over another, what loan structure suits you, whether pre-approval makes sense, what documents to prepare, realistic timing, what could cause a decline, and how they will keep you updated. The most useful opening question is not what the lowest rate is. It is which lender is most likely to approve you, and what that loan will actually cost overall.
The question most people open with
Almost everyone starts with some version of “what is your best rate?” It feels like the sharp, no-nonsense question to lead with. It is close to the least useful.
The reason is simple. A low rate is worth nothing if the lender declines your application. Lenders differ enormously in what they will accept: how they read your income, how they treat your existing debts, what they think of the property you are buying, how they handle a short employment history or a recently started business. A loan you cannot get approved for is not a cheap loan. It is not a loan at all.
A better opening question is this one: based on my situation, which lender is most likely to approve me, what will that loan actually cost overall, and what could go wrong? That question does two things at once. It gets you a more useful answer, and it tells you quickly whether the broker in front of you thinks in terms of lender policy or only in terms of price.
The first meeting should leave you clearer than when you walked in. If you come out more confused, that is information too.
Ten questions worth asking
These cover the ground that matters. For each one, it is worth knowing not just what to ask but what a good answer sounds like, because the quality of the answer is the actual test.
1. How much can I realistically borrow?
Ask for the figure and the reasoning behind it. Your borrowing capacity depends on your income, deposit, living expenses, dependants, credit card limits, car loans, HECS or HELP debt, and other commitments, and lenders weigh those differently from one another.
A good answer explains which of those factors is doing the most work in your case, and distinguishes between the maximum a lender might approve and a figure you would be comfortable repaying. Worth asking directly: “is this a safe budget, or the absolute ceiling?” A broker who only ever quotes the ceiling is not doing you a favour.
2. What deposit do I need for the property type I want?
Deposit requirements are not uniform. Houses, units, townhouses, off-the-plan purchases, construction loans and investment properties can all be treated differently, and some lenders apply tighter limits to particular property types or locations.
A good answer connects the deposit to the specific kind of property you are looking at, and flags early if the type you have in mind narrows the lender field.
3. How are you paid, and will this cost me anything?
Ask it plainly. For most standard residential home loans the lender pays the broker a commission on settlement and there is no cost to you. That arrangement must be disclosed in the broker’s Credit Guide before any credit assistance is provided.
A good answer is immediate and specific, tells you whether a fee could apply in your case, and confirms anything chargeable would be in writing before work begins. Hesitation or vagueness here is worth taking seriously, because this is the easiest question on the list to answer honestly.
4. How many lenders do you compare, and why this one?
Panel size matters, but the reasoning matters more. No broker compares every lender in Australia, and a large panel used lazily is no better than a small one used well.
A good answer names the trade-offs: why this lender over the others on approval likelihood, rate, fees, features and flexibility, and what you would be giving up by choosing it. If the recommendation arrives with no comparison attached, ask what else was considered.
5. What loan structure suits me?
The cheapest-looking loan is not automatically the best one. Fixed against variable, split loans, offset accounts, redraw, and the rules around extra repayments all shape how the loan performs over time.
A good answer ties the structure to your circumstances and your likely next few years rather than to today’s rate alone. A couple planning to take parental leave in two years has different needs from an investor holding for the long term, and the structure should reflect that.
6. Should I get pre-approval, and how does it affect my credit file?
This one has a detail most people miss. There is a real difference between an informal borrowing estimate, which is a broker’s calculation and involves no credit enquiry, and a formal pre-approval submitted to a lender, which generally does involve one.
A good answer explains that distinction without being asked twice, says which one they are proposing, notes how long it lasts, and is clear that pre-approval is conditional rather than a commitment to lend. Plenty can still change between pre-approval and settlement, including the valuation.
7. What documents should I prepare?
You want a specific list, not a general gesture at paperwork. Most applications need identification, income evidence, bank statements, savings history, and details of existing debts and credit limits. If you are self-employed, the list looks different and usually involves tax returns, business financials, and possibly your accountant.
A good answer arrives as an actual checklist tailored to your situation, ideally before you leave the meeting.
8. How long will this realistically take?
Ask for realistic timing rather than best-case timing, and ask them to walk you through the stages: borrowing estimate, conditional approval, valuation, formal approval, loan documents, settlement.
A good answer gives you ranges rather than promises, identifies which stage is most likely to cause a delay in your particular case, and is honest that timeframes depend on the lender rather than the broker. Nobody can guarantee an approval date.
9. What could cause my loan to be declined?
This is the most revealing question on the list, and the one people are most reluctant to ask. Common causes include inconsistent or recently changed income, high existing debt or credit card limits, a thin savings record, credit file problems, an unusual property type, a valuation coming in under the contract price, incomplete documents, or simply the application going to a lender whose policy was never going to fit.
A good answer is candid and specific to you. A broker who says nothing could go wrong either has not looked properly or is not being straight with you. Nearly all of these are cheaper to fix before lodgement than after a decline is on your file.
10. How will you keep me updated?
Poor communication is the single most common complaint about brokers, and it does real damage when a settlement date is approaching.
A good answer sets expectations concretely: who will contact you, how often, what happens if the lender asks for more information, and who to call if your usual contact is away. Vagueness here tends to predict vagueness later.
Read Intellect Finance’s real Google reviews
One reasonable way to sense-check any broker before you meet them is to read what previous clients actually said. Here are Intellect Finance’s Google reviews, pulled live from our Google Business Profile. They are real and unedited. Read them the way you would read any broker’s reviews, looking for the practical detail rather than the star count.
These reviews reflect other borrowers’ experiences. They are not a promise of any particular outcome for your loan, which will always depend on your own circumstances and lender assessment.
If you are buying your first home
First home buyers have the most to gain from a good first meeting and the least experience judging one. Alongside the ten above, these are worth adding.
- Which government schemes might I be eligible for, and which lenders participate in them?
- Can I buy with a smaller deposit, and what would that cost me in Lenders Mortgage Insurance?
- What upfront costs should I budget for beyond the deposit?
- Would a guarantor arrangement suit my situation, and what would it mean for the person guaranteeing?
- What do first home buyers most often get wrong at this stage?
Scheme eligibility and property price caps change, so confirm current details with Housing Australia and Revenue NSW rather than relying on any broker’s summary alone. Our first home buyer loans page covers the options in more detail.
If you are refinancing
Refinancing questions should be more numbers-driven, and the rate is the smallest part of it. The question that matters is not “can you beat my rate?” but “after everything, am I actually better off?”
- What are the total switching costs, including discharge fees, new loan establishment costs, and government charges?
- How long before the saving outweighs those costs?
- Would this extend my loan term? A lower monthly repayment achieved by stretching the term can cost considerably more over the life of the loan.
- If I consolidate other debts into the mortgage, what happens to the total interest I pay? Moving short-term debt into a long-term loan lowers the repayment but can increase the total cost substantially.
- Can I access equity, and what would that do to my repayments and my loan-to-value ratio?
Our refinancing page goes through the mechanics.
If your situation is more complex
Some circumstances need their own questions, because the assessment works differently and the field of suitable lenders is narrower.
- Self-employed. Ask them to explain add-backs and which lenders treat them more generously, and whether your file suits a full doc or low doc application. See our guide on self-employed lending.
- Using a guarantor. Ask whether it would be a limited guarantee and what the capped amount is, and how and when it could be released. Our guarantor home loan page covers the structure.
- Buying an investment property. Ask how the loan should be structured to keep investment and personal borrowing separate, and confirm the tax treatment with your accountant rather than your broker. See investment loans.
- Building. Ask how progress payments work, what the builder needs to provide, and what happens if construction costs run over.
- Credit history you are worried about. Raise it early rather than hoping it goes unnoticed. Being upfront lets a broker assess realistic options and avoid applications that are likely to be declined, since each application can leave a mark on your file. What is possible depends on your circumstances and lender policy.
Red flags worth walking away from
| Warning sign | Why it matters | Ask instead |
|---|---|---|
| Only talks about rate | A sharp rate can come with poor policy fit, higher fees, or weak approval odds. | “Why is this lender suitable for me specifically?” |
| Avoids fee questions | You should understand costs before handing over documents. | “Is your service free to me, and could any fee apply?” |
| Suggests approval is assured | No broker can compel a lender to approve a loan. | “What could realistically go wrong with my application?” |
| One option, no comparison | You cannot judge a recommendation without knowing the alternatives. | “What else did you consider, and why not those?” |
| Unclear on communication | Poor updates cause real stress around settlement deadlines. | “Who updates me, how often, and who do I call if you are away?” |
| No verifiable licence details | Licensing and dispute-scheme membership are your baseline protections. | “What is your credit licence number and who is your dispute scheme?” |
On that last one, you can check a licence yourself on the ASIC Connect professional registers. Ask which industry body they belong to, commonly the MFAA or FBAA, and confirm membership of the Australian Financial Complaints Authority, which gives you a free external dispute pathway if something goes wrong. Since 1 January 2021, brokers have also been legally required to act in your best interests under the National Consumer Credit Protection Act, a duty bank staff arranging their own employer’s product do not carry.
Before you go in: a short checklist
The quality of the answers you get depends partly on the quality of the information you bring. Ten minutes of preparation makes a noticeable difference.
- You know whether you are buying, refinancing, investing, building, or consolidating.
- You have rough figures for income, living expenses, existing debts, and deposit or equity.
- You know the area and property type you are considering.
- You have a rough timeframe in mind.
- You have your questions written down, including the uncomfortable ones about fees and what could go wrong.
You do not need to have everything perfect. A broker’s job includes telling you what is missing. But arriving with the basics means the first conversation produces answers rather than homework.
How Intellect Finance can help
We would rather you arrived with this list than without it. A first call with us covers the same ground: what you can realistically borrow and why, what the deposit picture looks like for the property type you want, how we are paid and whether anything would cost you, which lenders we would look at and what the trade-offs are, and what could cause the application trouble. We will also tell you when going direct to your own bank is the sensible option, because sometimes it is. The team has been based in central Penrith since 2005, is owner-operated so you deal directly with an experienced broker, holds Australian Credit Licence 390611, and the service is free to you. Our Penrith mortgage broker page has the full service detail.
Frequently Asked
First meeting FAQs
What borrowers ask before choosing a broker.
What is the most important question to ask a mortgage broker?
Not what the lowest rate is. A better opening question is which lender is most likely to approve you given your income, deposit, spending, property type and timeline, and what that loan will actually cost you overall. A low rate is worth nothing if the lender declines the application, and the cheapest headline rate can carry fees or conditions that make it more expensive in practice. Asking the question this way also tells you quickly whether the broker thinks in terms of lender policy or only in terms of price.
How much does it cost to use a mortgage broker?
For most standard residential home loans, nothing. The lender pays the broker a commission when the loan settles, and that arrangement must be disclosed in the broker’s Credit Guide before any credit assistance is provided. Fees are more likely on unusually complex applications, and any fee should be disclosed in writing before work begins. Ask the question directly at the first meeting rather than assuming either way, and treat a vague or deflected answer as a warning sign.
When should I speak to a mortgage broker?
Before you start making serious offers, rather than after you have found a property. An early conversation lets you understand your borrowing capacity, prepare documents properly, and resolve any credit or income issues while there is still time. Waiting until a contract is signed puts the finance under time pressure, which is when avoidable problems tend to surface. The same applies before refinancing, before signing a building contract, or when a fixed rate is due to expire.
What should I ask about pre-approval?
Ask whether pre-approval suits your situation, what kind it would be, and how it affects your credit file. There is a meaningful difference between an informal borrowing estimate, which involves no credit enquiry, and a formal pre-approval submitted to a lender, which generally does. Also ask how long it lasts and what could still cause the loan to fall over afterwards, because pre-approval is conditional rather than a commitment to lend.
What could cause my home loan to be declined?
This is one of the most useful questions you can ask, and a good broker will answer it plainly. Common causes include inconsistent or recently changed income, high existing debt or credit card limits, a short savings history, credit file issues, an unusual property type, a valuation coming in below the contract price, incomplete documentation, or the application simply going to a lender whose policy was never going to fit. Most of these are easier to address before lodgement than after a decline is recorded.
What should I ask if I am refinancing?
Move past the rate. Ask what the total switching costs are, including discharge fees, new loan establishment costs, and any government charges, and ask how long it takes for the saving to outweigh those costs. Ask whether refinancing would extend your loan term, because a lower repayment achieved by stretching the term can cost more overall. If you are consolidating other debts into the mortgage, ask the same question about those, since moving short-term debt into a long-term loan can increase the total interest paid.
What are the red flags when meeting a broker?
Talking only about rate without reference to whether the lender will approve you. Avoiding or deflecting questions about fees and how they are paid. Recommending one loan without explaining why it fits your situation specifically. Being unclear about how and how often they will keep you updated. And any suggestion that approval is assured, because no broker can compel a lender to approve a loan and anyone implying otherwise is overpromising.
How do I know a broker is properly licensed?
Ask for their Australian Credit Licence number or the licensee they operate under as a credit representative, and check it on the ASIC Connect professional registers. Ask which industry body they belong to, commonly the MFAA or FBAA, and confirm they are a member of the Australian Financial Complaints Authority, which gives you a free external dispute pathway. Since 1 January 2021 brokers have also been legally required to act in your best interests under the National Consumer Credit Protection Act.
The honest bottom line
If you only remember one thing from this page, make it the reframe. Replace “what is your best rate?” with “which lender is most likely to approve me, what will it cost overall, and what could go wrong?” That single change surfaces most of what you need to know, and it separates brokers who think about lender policy from brokers who think about price.
You are also allowed to leave. A first meeting is not a commitment, and a broker who makes you feel it is has told you something useful. Ask the uncomfortable questions about fees and about what could go wrong, and pay attention to whether the answers get more specific or more evasive. Good brokers welcome these questions, because answering them well is most of the job.
Next Reads
Guides for specific situations
Important disclosures, general advice warning and licensing
General information only. This article is general information only and does not constitute financial, credit, legal, or tax advice. It does not take your personal or financial circumstances into account. Before acting on any information here, you should consider whether it is appropriate to your objectives, financial situation, and needs.
Lender policies and scheme rules vary and change. Borrowing capacity, deposit requirements, acceptable documentation, approval timeframes, and pre-approval conditions differ between lenders and are subject to each lender’s own assessment and to change without notice. Government scheme eligibility and property price caps are set by the relevant authorities; confirm current details with Housing Australia and Revenue NSW. No broker can guarantee loan approval, and approval timeframes depend on the lender.
Other professionals. Tax questions, including the treatment of investment property and debt structuring, should be directed to your accountant or a registered tax agent. Legal questions, including contracts of sale and guarantee documents, should be directed to your solicitor or conveyancer.
About the reviews shown. The reviews displayed on this page are genuine reviews published by clients on Intellect Finance’s Google Business Profile, shown live via a third-party reviews widget. They reflect those individuals’ own experiences and are not a promise of any particular outcome for your loan.
Fees. Intellect Finance does not charge you a fee for arranging your loan. We are paid by the lender on settlement, not by you. In the rare situations where a fee could apply, it is set out in our Credit Guide and disclosed to you in writing before any work begins, so you are never charged anything you were not told about upfront.
Intellect Finance Pty Ltd holds Australian Credit Licence 390611 and is a member of the MFAA and AFCA. Lending criteria, fees, and terms apply.
Free First Meeting
Bring your questions. Free, No Pressure.
Book a free 15-minute call and put every question on this page to us. You will get straight answers on what you can realistically borrow, what it would cost you, which lenders we would look at and why, and what could go wrong with your application. We will also tell you if going direct to your own bank is the better move. No paperwork needed first, no obligation, free to you. Owner-operated, based in central Penrith since 2005. ACL 390611.
General information only, not financial advice. No fee to you; we are paid by the lender, and any rare fee is disclosed in writing before any work begins. No broker can guarantee loan approval.
Intellect Finance Pty Ltd | Australian Credit Licence 390611 | AFCA Member