As of 1 January 2021, ASIC has introduced guidance and legislation around how mortgage brokers must comply with their ‘best interests’ obligations. This means that there is now a legally enforceable framework around a mortgage broker acting in the best interests of their client at all times. This new legislation is principles-based and there are serious penalties for those acting outside of the parameters. For some mortgage brokers, this might mean a complete reassessment of their current business model.
As a mortgage broking business, we think this legislation has been a long time coming and we are pleased to see it being introduced! We have always believed that our client’s best interests should come first, no matter the circumstances. It is not only why we do, what we do, it is at the heart of how we do business.
One key difference you may find, is that the lenders and the banks do not have to follow this legislation as they are only offering their own products and services, this is why we strongly believe that engaging a broker, not only provides more options for you to choose from, but also provides a level of comfort that we are acting on your behalf.
