Why Mortgage Brokers Ask So Many Questions – And Why It Matters
Feeling Interrogated? There’s a Good Reason
If you’ve ever applied for a home loan and felt like your mortgage broker was asking a million questions, you’re not alone. But there’s a method to the madness—and it’s all about protecting you, the lender, and the integrity of the loan process.
At CBM Mortgages, we understand that the process can feel a little intense. But every question we ask is designed to ensure your loan is suitable, sustainable, and safe—for now and into the future.
Why So Many Questions? It’s About Trust and Compliance
Protecting You from Fraud and Financial Risk
Mortgage brokers are legally required to act in your best interests under the Best Interests Duty (BID) introduced in 2021. That means we must:
- Understand your financial situation
- Verify your income and expenses
- Assess your goals and future plans
This isn’t just red tape—it’s about making sure you’re not taking on a loan that could put you at risk.
Avoiding Fraudulent Applications
Even if a broker unknowingly submits inaccurate information, they can still be held accountable. That’s why we double-check everything—from your payslips to your previous addresses—to ensure your application is accurate and compliant.
As highlighted in the MFAA’s 2025 Industry Report, brokers play a critical role in maintaining trust in the lending system by conducting independent checks and cross-verifying information.
What You’ll Be Asked – And Why
1. Proof of Identity
To meet legal and lender requirements, we’ll need to verify your identity with documents like your driver’s licence or passport.
2. Income and Expenses
We’ll ask for:
- Payslips or income statements
- Bank statements
- Details of ongoing expenses and financial commitments
This helps us determine how much you can safely borrow.
3. Personal Circumstances
You may be asked about:
- Dependants
- Legal proceedings
- Previous bankruptcies
And yes, you might be asked the same question more than once—by both your broker and the lender. It’s all part of the due diligence process.
Why It Feels Repetitive – But Isn’t
Sometimes, you’ll be asked questions that seem unrelated—like your address from five years ago. But these details help us cross-check information and verify your identity, especially in an era where fraud is increasingly sophisticated.
As one legal expert puts it, “These bottlenecks in the lending process are a little bit like the security screen at the airport. It’s tedious, but necessary to ensure a safe flight.”
How CBM Mortgages Makes It Easier
At CBM Mortgages, we:
- Guide you through every step of the process
- Explain why certain documents are needed
- Help you avoid delays and errors that could derail your application
Want to see how we’ve helped others? Check out our strategies to pay off your home loan sooner
Let’s Get You Finance-Ready
If you’re ready to apply for a home loan—or just want to understand your options—we’re here to help. We’ll make the process as smooth and transparent as possible.
Call us today on 02 8068 0534 or visit CBM Mortgages to get started.
Further Reading:
- Calculate your monthly repayments blog
- Buying a property with friends
- First Home Buyer Grants – Revenue NSW
- Looing for a Mortgage Broker in Bronte
Disclaimer:
The information provided in this article is for general guidance only and does not constitute financial or legal advice. It does not consider your personal circumstances. Before making any financial decisions, seek professional advice from a licensed mortgage broker or financial consultant. This content is protected by copyright laws and may not be modified, reproduced, or republished without prior written consent.
Written by Craig McDonald 15/06/2025
