The first way I would look at this question is to start at the other hand and first ensure that you are not dealing with a BAD mortgage broker. In other words, you first need to check on their basic qualifications and licensing.

• Your mortgage broker must be a Mortgage and Finance Association of Australia (MFAA) member. You can check their membership here: http://www.mfaa.com.au
  
  
• Your mortgage broker must be a Credit Ombudsman Services (COS) member. You can check their membership here: http://www.cosl.com.au
  
  
• Your mortgage broker must have minimum qualification in Diploma of Finance Broking.
  
  
• Your mortgage broker must have a large panel of lenders (at least 12 but ideally
  over 20).
  
  
• Your mortgage broker or someone supervising him within the office must have at least 3 years of experience in the industry.
  
  
• Your mortgage broker must be either licenced directly with ASIC (preferably) or be authorised by someone who is licenced. You can carry out reference checking for ASIC licencing here.

Now at the basics are covered, what else should I look for in a mortgage broker?

Once you have established that your mortgage broker meets the very minimum requirements above, you can then consider his or her credentials further:

Does your broker have good support? A good broker must spend a lot of time with clients which in turns hampers his or her capacity to chase the lenders efficiently.

If your broker does not have the admin support that is needed the chances are that however good they are with you and their product / structuring abilities, the trouble will start once the application is lodged!

What lenders has your mortgage broker used in the last 2 months? You want someone who has used at least four or five different lenders within that time frame.

Unfortunately some average brokers are comfortable using 1 or 2 lenders which they recommend to everyone regardless of circumstances. That would be a strong indicator that you are unlikely to get the best possible loan.

Has your broker disclosed all the commissions and benefits he will receive from your business? It is a legal requirement that is often overlooked but crucial!

You need to have a very clear picture of how your broker will benefit from your loan as it could impact his recommendations.

Has your broker been recommended to you by someone you trust? If not you might want to check online reviews, Facebook page and the like to avoid anyone with a past made of horror stories.

Can your broker or his office offer you professional advice regarding the risk associated with your new mortgage? Any sizeable debt brings a certain amount of risk which you need to be made aware of and which you need to be explained how to manage.

Your broker or his office must be able to offer you the appropriate insurance – be it life, income or trauma.

Has your broker ever been recognised by his peers or the public for his work? Are there any local paper articles about his or her good work? Have they been awarded any industry prizes.

Either of these will give you further reassurance regarding the quality of the advice you are receiving.

Ticked all the boxes?