How to Complain About a Mortgage Broker in Australia (2026)
Mortgage brokers are regulated under Australian financial services law. If your broker has provided unsuitable advice, failed to disclose a conflict of interest, charged fees improperly, or misled you, there are clear avenues to make a complaint and seek resolution.
Broker Legal Obligations — What They Owe You
Mortgage brokers in Australia must hold an Australian Credit Licence (ACL) or operate as a credit representative of an ACL holder. Under the National Consumer Credit Protection Act 2009 and ASIC Regulatory Guide 273, brokers must:
Best interests duty (since 2021): Mortgage brokers must act in the best interests of the consumer. This includes:
- Recommending the loan that best suits the consumer’s circumstances — not the loan with the highest commission
- Disclosing commissions received from lenders
- Avoiding conflicts of interest that are not in the consumer’s best interests
Responsible lending: Brokers must make inquiries into your financial situation and not recommend a loan that is unsuitable for you.
Disclosure:
- Credit Guide (before providing credit assistance)
- Credit Proposal Disclosure (details of the loan recommended)
- Commission disclosure (lender commissions)
Common Grounds for Broker Complaints
| Complaint type | Example |
|---|---|
| Unsuitable loan recommended | Broker recommended interest-only investment loan when you wanted owner-occupied P&I |
| Undisclosed conflict of interest | Broker directed you to a lender they have a financial interest in without disclosure |
| Fee charged without authorisation | Broker charged a fee not disclosed in the Credit Guide |
| Misleading representations | Broker claimed you would be approved when you were not qualified |
| Application details incorrect | Broker submitted different financial details than you provided |
| Failure to follow instructions | Broker submitted to a lender you specifically asked not to use |
Step 1 — Complain to the Broker Directly
Most broker businesses have an internal complaints process. Contact the principal of the broker business (or their compliance team if a larger organisation) in writing. Clearly state:
- What happened
- Why it was wrong
- What outcome you are seeking
Keep copies of everything.
Step 2 — Escalate to AFCA
If your complaint is not resolved within 30 days (or 21 days for hardship matters), or if you are not satisfied with the outcome, escalate to AFCA — the Australian Financial Complaints Authority.
All licensed brokers are AFCA members. AFCA can:
- Require the broker to compensate you for losses caused by misconduct
- Order fee refunds
- Issue findings of broker misconduct
Lodge at: afca.org.au (free for consumers)
Step 3 — Report to ASIC
If you believe the broker has breached their licensing obligations, report to ASIC. ASIC can:
- Investigate and take enforcement action
- Suspend or cancel a credit licence
- Ban individuals from holding an ACL
Report at: asic.gov.au (select “Report a concern”)
Note: ASIC does not resolve individual disputes — that is AFCA’s role. ASIC focuses on systemic conduct and licensing compliance.
Checking a Broker’s Licence
Before lodging a complaint (or ideally before engaging a broker), you can verify their licence:
ASIC Connect’s Professional Registers: Connect.asic.gov.au
Search for the broker’s name or their ACL number. You can confirm:
- Whether they hold or are a representative under an ACL
- Whether their licence is current
- Whether any bans or conditions apply
Commission Disclosure — Your Right to Know
Since 1 January 2021, mortgage brokers must disclose commissions in their Credit Proposal Disclosure document. You are entitled to know:
- Upfront commission: Typically 0.5–0.65% of the loan amount paid by the lender to the broker
- Trail commission: Typically 0.15–0.2% per year of the outstanding loan balance (ongoing)
If a broker cannot or will not provide clear commission disclosure, this is a red flag and a potential breach of their obligations.
Frequently Asked Questions
My broker submitted an application with income figures I didn’t provide. What can I do?
This is a serious matter — potentially constituting fraud or negligent misrepresentation. Complain immediately to the broker’s principal in writing, then escalate to AFCA. Also consider whether the lender received fraudulent documentation — contact them as well. Report to ASIC if the conduct appears deliberate.
Can I get compensation if my broker’s mistake cost me a better loan?
Potentially yes — AFCA can award compensation for financial loss caused by broker misconduct. Document the difference between the loan you got and the loan you should have received (a comparison from another broker, for example). The evidentiary standard is that the broker’s conduct caused the loss.
My broker won’t answer calls now that I’ve complained. What do I do?
Escalate directly to AFCA — you do not need the broker’s cooperation to pursue a complaint. AFCA contacts the firm directly and they are obligated to participate.
Related Guides
- How to Make a Mortgage Complaint in Australia
- AFCA — Australian Financial Complaints Authority Explained
- Working With a Mortgage Broker — What to Expect
- Mortgage Complaints Hub
This article provides general information about mortgage broker complaints in Australia. For complex disputes, consider seeking legal advice. Contact AFCA at afca.org.au or report broker misconduct to ASIC at asic.gov.au. Find further resources through MoneySmart.