If you’re looking to buy property in Melbourne—especially if it’s your first time—it can be tough to know where to start. The home loan process is full of financial jargon, endless paperwork, and banks that all seem to offer slightly different things. That’s where a mortgage broker in Melbourne can be a massive help. But not all advisers are the same, and knowing the right questions to ask can save you from making some very expensive mistakes.
This guide walks you through the essential questions to ask when meeting with a loan adviser—so you get clear answers, avoid confusion, and walk away with a loan that actually works for you.
Why It’s Worth Asking Questions (Lots of Them)
A home loan is probably one of the biggest financial commitments you’ll ever make. And once you lock in a loan, it’s not easy to back out. That’s why it’s important to ask as many questions as you need before moving forward.
Don’t worry about sounding unprepared or clueless—asking smart questions is a sign that you’re serious about making the right call.
1. How Do You Get Paid?
This one should always be near the top of your list. Most loan advisers get paid through commissions from the lender, not directly from you. That means once your loan settles, the lender gives them a cut of the deal.
Here’s what you want to know:
- Do you charge me any fees?
- How much commission do you receive from the lender?
- Do you receive ongoing “trail” commissions?
A good adviser won’t dodge these questions. They should be happy to be upfront about how they’re paid and who’s paying them.
2. How Many Lenders Do You Work With?
Some advisers only work with a handful of lenders. Others have access to a wider range of banks, credit unions, and non-bank lenders.
More lenders generally mean more choice—but only if the adviser actually compares them for you.
Ask:
- How many lenders are on your panel?
- Do you have any preferred lenders?
- How often do you check the whole panel for better deals?
This question is especially important for first home buyers, who may not know what’s considered a good deal or how much rates can vary between banks.
3. Why Are You Recommending This Loan?
Let’s say they suggest a particular loan. Your next question should be: “Why this one?”
Don’t settle for a vague answer like “It’s a good fit.” Ask:
- What features does this loan offer?
- How does it compare to other loans available to me?
- Is this the best option based on my goals?
You want your adviser to explain things like offset accounts, redraw facilities, fixed vs variable options, and why they’re recommending them.
4. What Type of Loan Best Fits My Situation?
Not every home loan is the same. The right loan depends on things like:
- Your income
- How stable your job is
- Your deposit size
- Future plans (e.g. upgrading, investing, or refinancing)
Ask your adviser to walk you through a few options, and explain the pros and cons of each. You might find that the cheapest interest rate comes with restrictions—or that a slightly higher rate comes with features that will save you more in the long run.
5. What’s the Comparison Rate?
Interest rates are everywhere—but they don’t always tell the full story. That’s where the comparison rate comes in. It combines the interest rate with most of the standard fees and charges, so you get a clearer picture of the real cost.
Ask:
- What’s the comparison rate for this loan?
- Are there any hidden fees I should know about?
If the difference between the interest rate and comparison rate is huge, ask why. It could mean high fees are buried in the fine print.
6. Can You Help Me Access Any Grants or Schemes?
In Melbourne and across Victoria, there are a few incentives available to certain buyers—especially those entering the property market for the first time.
Ask:
- Am I eligible for any first home buyer schemes or grants?
- Can you help me apply?
- Will these schemes affect the loan options available?
Some banks also offer special products for new buyers, with lower deposit requirements or waived fees. Your adviser should know about these and help you figure out which ones apply to you.
7. What Happens If I Want to Refinance Later?
Life changes. You might want to refinance in a few years to get a better deal, renovate, or consolidate debts.
Ask:
- Will there be any break fees or exit costs if I refinance?
- Do you offer help with refinancing down the line?
- Are there flexible options built into this loan?
A forward-thinking adviser will help you set up a loan that works now and later.
8. What’s the Total Cost of the Loan Over Time?
Even if a loan looks great now, it could end up costing more in the long run.
Ask:
- What will I pay over 5, 10, or 30 years?
- How much of that is interest?
- What can I do to reduce the total amount I pay?
They should be able to show you example repayment schedules, with different scenarios (e.g. if you make extra payments, go interest-only, or refinance).
9. What Documents Do You Need From Me?
Getting a home loan means paperwork. And lots of it. Getting your documents organised early speeds up the process and helps avoid delays.
Ask:
- What financial documents do you need?
- Do I need to provide proof of savings or rental history?
- How long does the whole process take?
This is also a good time to ask how they keep your data secure—especially when sharing sensitive financial info.
10. What Ongoing Support Do You Offer?
Some loan advisers disappear after settlement. Others stick around and help you monitor your loan over time, check if you’re still getting a good deal, or guide you through refinancing.
Ask:
- Do you offer support after the loan is settled?
- Will you let me know if better deals come up?
- How do I get in touch if I need help later?
Long-term support can be a big bonus—especially if interest rates change or your financial situation shifts down the line.
11. What Are the Different Types of Mortgage Brokers?
Not every adviser works the same way. There are independent advisers who aren’t tied to any bank, and there are others who work under larger firms or directly with lenders. Knowing the types of mortgage brokers helps you understand their priorities.
Ask:
- Are you independent, or do you work under a bank or aggregator?
- Do you have any partnerships that could affect your recommendations?
- Can I see your accreditation and license?
This gives you peace of mind that the advice you’re getting is genuine—and not just ticking boxes.
12. Can You Explain Things in Plain English?
Okay, this one’s less about a specific question and more about the vibe.
A good adviser should explain things clearly, answer your questions without talking in circles, and make you feel comfortable asking anything—even the stuff you think sounds silly.
If they’re brushing off your concerns or throwing financial jargon at you, keep looking. The right adviser will want you to feel informed.
Conclusion
When you’re choosing someone to help with your home loan, don’t just sit through a sales pitch. Ask questions—lots of them. A great loan adviser won’t just offer good answers, they’ll help you feel confident that you’re making the right decisions.
So go ahead—ask the tough stuff. The more you know now, the smoother the road to homeownership will be later.
