New Year - New Obligations
After much industry-wide debate, best interests duty for mortgage brokers - the statutory obligation for me to act in the best interests of consumers and to prioritise consumers’ interest when providing credit assistance - is now law.
And frankly, it’s yet another reason buyers should work with brokers and not directly with banks to secure their home loan.
This new legal duty offers customers peace of mind knowing that their mortgage broker is legally required to act in their best interests. It is important for you to know (and share with your clients) that best interests duty doesn’t apply to banks.
This is just one more reason I encourage you to educate your clients on the benefits of using a broker. After all, there’s a big difference between getting a home loan through a banker versus getting a loan through a broker. Yes, it’s easy to walk into a bank to ask for a loan… but there are at least 6 reasons why it makes more sense to get a broker, like me, on the team.
1. PRIORITY - I am legally bound to put the buyer’s best interests first
2. FOCUS - I work for the buyer, not for the bottom line of a bank
3. CHOICE - I’ll compare plenty of rates, lenders, and terms
4. NO FEES* - I come at no cost to the buyer for my service and expertise
5. READY - I’m available to the buyer all the time; online or in person
6. LOYAL - I’ll be there for the long haul to review their loan and support their future plans
Especially for first home buyers, having a finance expert who is invested in their journey can be crucial to making the home ownership dream come true.
*There may be occasions where you may be charged a fee by your broker
This document has been created by Loan Market Pty Ltd (ABN 89 105 230 019, Australian Credit Licence number 390222). It provides an overview or summary only and it should not be considered a comprehensive statement on any matter. You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs. Loan Market Pty Ltd is not in any way responsible for nor provides any warranty express or implied as to its accuracy or relevance.