Buying a home is one of the biggest financial decisions you’ll make, so it’s worth understanding who you’re trusting to arrange your finance.
Mortgage brokers in Australia must operate within the Australian credit licensing framework. A broker may hold their own Australian Credit Licence or be authorised as a credit representative of another licence holder. Either way, consumers should be able to identify the licence or authorisation under which their broker operates.
An MFAA member operates within the association’s professional and conduct standards, including continuing professional development and the MFAA Code of Practice. Understanding these differences can help you choose a mortgage broker with confidence.
At What If We Finance, we help buyers compare home loan options from more than 50 lenders while providing guidance that’s tailored to their financial goals and circumstances.
Key Takeaways
- Licensed mortgage brokers are regulated by Australian Securities and Investments Commission (ASIC) under Australia’s credit laws
- Brokers must either hold an Australian Credit Licence or operate as an authorised credit representative
- MFAA membership reflects a commitment to ongoing professional development and the association’s professional and conduct standards
- Licensed brokers must act in your best interests when recommending credit assistance
- Checking a broker’s credentials is a simple but important step before applying for a home loan
What Is a Licensed Mortgage Broker?
A licensed mortgage broker is authorised to provide credit assistance under Australia’s regulatory framework. They either hold an Australian Credit Licence issued by the Australian Securities and Investments Commission (ASIC) or work as an authorised credit representative for a licence holder.
Unlike a lender that offers only its own products, a mortgage broker compares home loans from multiple lenders to help identify options that suit a borrower’s financial circumstances.
Mortgage brokers are regulated under the National Consumer Credit Protection Act 2009 (NCCP Act), which establishes responsible lending obligations and consumer protections.
We’ve been helping borrowers since 2008, and over that time the regulatory and lending environment has changed significantly. Good mortgage broking today involves considerably more than finding a competitive interest rate. It requires understanding lender policy, responsible lending obligations, compliance requirements and, most importantly, the client’s circumstances.
According to Spiro Kolokithas, Managing Director of What If We Finance:
“For me, good mortgage broking is not about finding a bank that will say yes. It’s about understanding the client first, comparing the available options and being able to clearly explain why we’re recommending a particular lender and loan structure.”
What Does an Australian Credit Licence Mean?
An Australian Credit Licence (ACL) is issued by ASIC to businesses authorised to engage in specified credit activities. A mortgage broker may hold their own ACL or operate as a credit representative of another ACL holder. The distinction matters because an individual broker does not necessarily hold a licence in their own name.
What If We Finance holds its own Australian Credit Licence (ACL 389609), which means our business operates directly under its own credit licence rather than as a credit representative of another brokerage.
Whether a broker holds their own licence or works under another licence holder, they must comply with requirements that include:
- acting honestly, efficiently and fairly
- maintaining appropriate training and competence
- meeting responsible lending obligations
- keeping adequate compliance systems
- belonging to an approved external dispute resolution scheme such as AFCA.
These obligations provide borrowers with greater confidence that their broker operates within Australia’s regulated financial services framework.
What Is MFAA Membership and Why Does It Matter?
The Mortgage & Finance Association of Australia (MFAA) is one of Australia’s leading mortgage and finance industry bodies. MFAA members are expected to meet education standards, complete continuing professional development (CPD), comply with the MFAA Code of Practice and maintain appropriate professional conduct.
For borrowers, membership can be one indication that a broker is committed to ongoing professional development and standards beyond the basic requirements for operating in the industry.
Other recognised industry organisations, such as the Finance Brokers Association of Australia (FBAA), also support professional standards across the mortgage broking industry.
How Does ASIC Regulate Mortgage Brokers?
ASIC oversees Australia’s consumer credit industry and monitors compliance with the NCCP Act.
Its role includes licensing credit providers and brokers, enforcing consumer protection laws, investigating misconduct and ensuring brokers continue to meet their legal obligations.
An important part of this framework is the Best Interests Duty, which requires mortgage brokers to place a client’s interests ahead of their own when providing credit assistance.
Best Interests Duty is important because a mortgage broker isn’t simply there to find a loan that can be approved. We need to consider the client’s circumstances and interests when providing credit assistance and be able to demonstrate why the recommendation has been made.
How Can You Check if a Mortgage Broker Is Licensed?
Before choosing a broker, it’s worth spending a few minutes verifying their credentials.
You can check whether a broker:
- holds an Australian Credit Licence or is an authorised credit representative through ASIC’s Professional Registers
- belongs to an industry association such as the MFAA or FBAA
- is a member of the Australian Financial Complaints Authority (AFCA)
- clearly explains how they are paid
- has experience helping borrowers with circumstances similar to yours.
Completing these checks can provide reassurance before sharing sensitive financial information or beginning a loan application.
What Should You Look for in a Mortgage Broker?
Licensing is the starting point. Experience, communication, lender knowledge, qualifications, customer service and the ability to explain a recommendation should also matter when you’re choosing someone to help with your home loan.
Mortgage broking has become increasingly complex. It matters that an experienced brokers continues professional development matters. The Mortgage Finance Professional Australia (MFPA) designation is an additional professional designation for experienced MFAA members who meet specific experience, education and professional requirements.
At What If We Finance, our professional credentials reflect that approach. Spiro Kolokithas has been an MFAA member for 17 years and won the MFAA Victoria Customer Service Award in 2024, followed by finalist recognition in 2025 and 2026. These recognitions sit alongside ongoing professional development and experience helping borrowers navigate increasingly complex lending requirements.
An experienced broker should take time to understand your financial goals, explain why certain lenders may suit your circumstances and communicate clearly throughout the application process. This can be particularly important when your circumstances require a more tailored approach.
For example:
- First home buyers often need guidance on borrowing capacity, government schemes and lender policies before making an offer.
- Investors may require lenders with policies that better support future property purchases and portfolio growth.
- Self-employed borrowers often benefit from lenders that assess business income and alternative documentation differently.
- Borrowers looking to refinance may need help comparing whether switching lenders or renegotiating with their current lender provides better long-term value.
Do Mortgage Brokers Charge Fees?
One of the most common misconceptions is that using a mortgage broker always costs borrowers extra.
In many standard residential lending scenarios, the lender pays the broker a commission after settlement, meaning borrowers often don’t pay a separate fee. However, this isn’t universal. Some brokers may charge a fee for complex lending scenarios or specialised advice, provided this is disclosed upfront.
A trustworthy broker will clearly explain how they are remunerated before you proceed, allowing you to make an informed decision.
About Spiro Kolokithas
Spiro Kolokithas is the Managing Director of What If We Finance and has been helping borrowers navigate home lending since 2008. He holds the Mortgage Finance Professional Australia (MFPA) designation and has extensive experience across home lending, lender policy and loan structuring. What If We Finance holds its own Australian Credit Licence.
Common Myths About Mortgage Brokers
Several misconceptions still influence how borrowers choose a mortgage broker. Understanding the facts can help you make a more informed decision.
| Myth | Reality |
| Mortgage brokers always charge borrowers. | Many standard home loan applications are paid for by the lender, although some situations may involve disclosed fees. |
| Brokers recommend whichever lender pays them the most. | Australian brokers must comply with the Best Interests Duty when providing credit assistance. |
| All brokers offer the same lenders. | Every brokerage has its own lender panel, so available options can vary. |
| Banks always offer the lowest interest rates. | The most suitable loan depends on interest rates, loan features, lender policy and your financial circumstances. |
Real-Life Examples of How a Professional Broker Can Help
Different borrowers require different lending strategies. A professional broker needs to assess the details of each application rather than assume the same lender or loan structure will suit everyone.
For example, a self-employed borrower may need their income assessed differently from a salaried applicant, while an investor may need a loan structure that takes future borrowing plans into account. A borrower refinancing may instead need to compare the costs and benefits of changing lenders against their existing loan.
The value of professional guidance is in understanding these differences before comparing suitable lending options.
Checklist: How to Choose a Mortgage Broker
Before committing to a mortgage broker, it’s worth asking a few practical questions.
- Are they licensed or an authorised credit representative?
- Can you verify their details through ASIC?
- Are they an MFAA or FBAA member?
- Do they clearly explain how they are paid?
- Do they compare multiple lenders?
- Do they explain why they’re recommending a particular loan?
- Do they have experience with borrowers in situations similar to yours?
- Will they continue supporting you after settlement?
The answers to these questions can help you understand how the broker operates and whether you’re comfortable trusting them with your lending.
Why Choosing the Right Mortgage Broker Matters
Choosing a mortgage broker isn’t simply about finding someone who can arrange a loan. It’s about selecting a professional who understands lending policy, communicates clearly and supports you from application through to settlement.
At What If We Finance, we’ve been helping home buyers, property owners and investors since 2008. We hold our own Australian Credit Licence and compare suitable lending options based on each client’s circumstances. Our approach is to understand the client first and clearly explain why we’re recommending a particular strategy.
Licensing is essential, but we believe consumers should also look at experience, qualifications, ongoing professional development and the standards a broker sets for themselves beyond the regulatory minimum.
Book a free 30-minute meeting or call us on 03 8804 1354. We’re available 7 days a week.
Frequently Asked Questions
Is my mortgage broker legally required to be licensed?
Yes. Mortgage brokers must either hold an Australian Credit Licence or operate as an authorised credit representative under a licence holder. They are regulated by ASIC and must comply with Australia’s consumer credit laws.
How can I check if a mortgage broker is an MFAA member?
You can search the MFAA member directory or ask your broker directly about their membership. You can also verify their licence or authorisation through ASIC’s Professional Registers.
Does MFAA membership cost borrowers anything extra?
No. MFAA membership is a professional accreditation held by the broker. It does not create an additional fee for borrowers. As with any broker, you should ask how the broker is remunerated and whether any fees apply to your particular loan.
What happens if someone operates without a valid Australian Credit Licence?
Providing regulated credit activities without the required authorisation may breach Australian law. Consumers should always verify a broker’s credentials before proceeding with a loan application.
What is the Best Interests Duty?
The Best Interests Duty requires mortgage brokers to act in their clients’ best interests when providing credit assistance. This legal obligation helps ensure loan recommendations are based on the borrower’s needs rather than the broker’s commercial interests.
This article is intended for general information purposes only and does not constitute financial advice. Please speak with a licensed mortgage broker or financial adviser regarding your personal circumstances.
