What Are the Best Interests Duties Mortgage Brokers?
The best interests duties keep mortgage brokers honest. Brokers in the Australian housing market serve a great purpose. They help home buyers find the best home loan for their financial circumstances. This cuts down the time it takes to purchase a home. Since the homebuyer skips the finding a mortgage step through a broker, they can focus on applying for the home loan instead.
Mortgage brokers have a purpose in the homebuying process. It gets tricky when they represent one lender or a set of limited mortgage products. In the past, mortgage brokers fitted their clients to the financial products they represented. This meant that a well-qualified home buyer didn’t receive the best loan terms. It also meant that homebuyers with blemishes received mortgages that didn’t pass the buffering test.
When a homebuyer obtains a mortgage that they cannot afford, it puts them in a precarious situation. Well-qualified homebuyers should leverage their financial stability into the best loan terms.
The best interests duties for mortgage brokers come from the National Consumer Credit Protection Act 2009. For mortgage brokers, the regulation went into effect on January 1, 2021. Despite the lenders the brokers represent, they must always place the interests of their clients first.
Best Interests Duties and Mortgage Brokers Conclusion
As non-bank mortgage lender, our loan specialists adhere to the best interests duties independently. We work with mortgage brokers and the homebuyers that they represent. Our loan specialists find the best home loan products for every home buyer and investor. Start the process with us today.