What to Ask a Mortgage Broker Before You Choose One

Asking the right questions upfront saves you time and helps you find a broker who truly fits your situation. Here’s what you need to ask.

1. How Many Lenders Do You Work With?

Why this matters: A broker who only works with 2-3 banks can’t find you the best deal. You want someone who compares widely.

What a good answer sounds like: “We work with over 15 lenders including major banks, non-bank lenders, and specialist lenders for unique situations.”

Red flag: “We mainly work with [one bank name]” or “We don’t really work with [major competitor bank].”

2. How Are You Paid?

Why this matters: Most brokers are free to borrowers because the bank pays them. But you deserve to know how much they earn from your loan.

What a good answer sounds like: “The bank pays us a commission of around 0.5% to 1% of your loan amount. You don’t pay us anything directly.”

Red flag: “I’d rather not say” or “That’s between me and the bank.”

Note: Brokers in New Zealand are not legally required to disclose their commission, but a trustworthy broker will tell you when asked.

3. Do You Have Experience with Clients Like Me?

Why this matters: A broker who usually helps investors may not understand first-home buyer challenges. A broker focused on standard PAYE income may struggle with self-employed clients.

What a good answer sounds like: “Yes, about 40% of our clients are first-home buyers. We also work with many self-employed clients and investors.”

Red flag: “Everyone’s the same really” or “A loan is a loan.”

4. What Happens if a Bank Says No?

Why this matters: Some brokers give up after one decline. Good brokers have relationships with multiple lenders and know how to pivot.

What a good answer sounds like: “We have 3-4 backup lenders we can try. We’ll also review your application to see if we can strengthen it before resubmitting.”

Red flag: “If the first bank says no, there’s probably nothing we can do.”

5. Will You Handle Everything or Will I Need to Chase?

Why this matters: You’re paying for convenience. A good broker manages the paperwork, chases the bank, and keeps you updated.

What a good answer sounds like: “We’ll manage the entire application. You’ll hear from us every 2-3 days with updates. We’ll let you know exactly what documents we need and when.”

Red flag: “You’ll need to follow up with the bank yourself for some things” or “We’re pretty busy so feel free to check in.”

6. Do You Also Sell Insurance?

Why this matters: Some brokers push insurance hard because commissions are high. You should know if you’re getting advice or a sales pitch.

What a good answer sounds like: “Yes, we can help with insurance if you need it, but there’s no pressure. We’re happy to just do the mortgage.”

Red flag: “You really should get insurance through us” or “The bank requires you to have insurance through our partner.”

You are allowed to say no. You can get mortgage protection, life, or home insurance anywhere you choose.

7. Can You Provide Recent Client References?

Why this matters: Reviews online can be fake or old. Speaking to a recent client tells you how the broker actually works.

What a good answer sounds like: “Absolutely. I can connect you with 2-3 clients I’ve helped in the last few months.”

Red flag: “I don’t really do that” or “You can read our Google reviews.”

Quick Summary: Your Broker Checklist

One More Thing: You Don’t Have to Use the First Broker You Call

Talk to 2-3 brokers before deciding. The right broker for your friend might not be the right broker for you. Compare their answers, their communication style, and how comfortable you feel with them.

A great mortgage broker saves you time, money, and stress. A bad one adds to it. These questions help you tell the difference.