Interest rates have rarely been more important than now after the RBA hiked up its cash rates for the first time in a decade last week.

If you're a keen home buyer, you should definitely study the whys and wherefores of the new 0.35% rate - but there are many other questions you should ask your mortgage broker too if you choose to utilise one.

Read on to find out more.

How can a mortgage broker help me find a home?

Mortgage brokers aren't compulsory but first-home buyers, in particular, may wish to secure one.

Brokers are essentially mediators between you and lenders and their assistance and experience can be invaluable as well as saving you time and money.

This includes handling scary stuff like loan applications, sales negotiations and settlement processes.

Are mortgage brokers really free?

You may be even more impressed by a broker when they tell you that you won't have to splash cash for their work.

But here's how broker payments play out.

The broker will recommend several lenders to you with different home loans to choose from.

The lender you pick for your home loan will then pay your broker a fee or commission.

Alternatively, some brokers may ask you for a direct upfront fee along with - or instead of - the lender's commission.

Be mindful of potential fees such as those for administration, small loans, complex loans, and cancellations as well as "commission clawbacks".

This latter fee is charged when mortgage holders refinance their loan with another lender within two years of the original settlement with the broker, as well as if the loan is fully repaid in this period.

So, our advice to you?

Make sure you're across all payment points with your broker, including all the terms and conditions.

What are the most important questions I should a broker?

Firstly, don't be afraid to ask lots of questions.

Start with broker fees and commissions

• How do you get paid for the advice you're giving me?

• Does this differ between brokers?

• What fees and commissions will you charge me and exactly how much will these be
• Can you get lenders to waive application, appraisal, origination, and other fees?

Particular mortgage broker questions

• How much experience do you have as a mortgage broker?

• Are you a member of the Mortgage & Finance Association of Australia (MFAA) or Finance Brokers Association of Australia (FBAA)?

• Do you have your own credit license or are you a credit representative?

General lender and loan questions

• Who, and how many lenders, do you have on your panel of lenders? (NB: ensure the lender panel features at least 20 lenders and includes both banks and non-bank lenders).

• What sort of lenders do you work with?

• How do you determine which loan is best suited to my personal situation?

When you're close to deciding on a loan

• Why is this loan in my best interests?

• What features and options come with this loan?

• What information do I need for my home loan application?

• When will my pre-approval, conditional approval and full approval loans be approved?
  

We're here to help

If you're in the market looking to buy, or considering refinancing, it's important to do your homework, especially when it comes to finances. Getting conditional pre-approval could give you a better chance of locking down a new place before someone else does.

Listing Loop also gives you a better chance of locking down a new place before someone else. Our off-market and pre-market marketplace gives you VIP access to properties so you can get in first.

If you're not a member yet, sign up at Listing Loop, download our app or get in touch with us here.