Under the best interests duty (BID), mortgage brokers are legally bound to prioritise your financial interests above all else when recommending a home loan.
TL;DR
Since 1 January 2021, the best interests duty (BID) is a statutory obligation for Australian mortgage brokers. It legally requires brokers to act in the best interest of their clients and prioritise customer needs above all else when providing credit assistance.
Putting clients first has always been at the heart of how Loan Market operates. BID formally embeds this commitment into law, giving you complete confidence that your broker is working purely for your financial benefit.
Working with a broker provides a distinct advantage over approaching a bank directly.
To ensure every loan recommendation fulfils the strict standards of BID, a Loan Market broker follows a structured process:
Present clear loan choices, explain the details in plain English, guide you through the decision-making process and manage your application from start to finish.
You may notice that your Loan Market broker asks more detailed questions, requests thorough documentation and spends extra time reviewing your objectives. This thorough approach is not meant to add complexity. It is proof that your broker is doing the proper diligence to protect your financial interests and secure the right loan for your future.
Whether you are buying your first home, investing or refinancing, partner with a dedicated Loan Market broker who is here to defend your back pocket and stay in your corner even after your loan settles. They will keep checking in to ensure your rate remains competitive and your loan continues to work hard for you. Your goals aren’t static, so your loan shouldn’t be either.
Banks and direct lenders only sell their own suite of products. Because bank staff do not provide comparative advice across the wider lending market, Australian regulations do not subject them to BID. They are permitted to sell you their own home loans even if a competing bank offers a cheaper or better option.
BID guarantees that your mortgage broker is legally bound to work for you, not the lenders. When you work with a Loan Market broker, you gain access to objective advice, transparent comparisons across 100+ lenders and recommendations tailored to your personal financial goals.
Brokers must document your financial situation, goals and loan preferences in detail. They then evaluate multiple lenders against those factors and provide a clear written rationale showing why the recommended loan delivers the best overall value and fit compared to other available options.
