26 Jan 2022

What Are the Best Interests Duties?

Business Loans

In Australia, several finance-related brokers and advisers are under a legal obligation to perform according to the best interests duties of their clients. The National Consumer Credit Protection Act in 2009 launched the original law. Australia has seen its fair share of economic and financial turmoil. The years 2007 and 2008 were no exception. 

The best interests duties clause comes from the Australian Securities and Commission. When a mortgage broker or financial adviser obtains their license, they become familiar with regulatory guides such as 175. Most mortgage brokers and financial advisers act as middle people in financial transactions. Some represent one client and only the products provided by the financial institution. Others represent only one product. 

This puts the broker and adviser in a predicament. If they work with a client and the client qualifies for a better product not offered by the financial entities, they must let the client walk away. It’s a tough situation when clients remain sparse in seasonal times. 

Mortgage House works with mortgage brokers and the homebuyers that they represent. We also work with home buyers and investors directly. In all cases, our loan specialists have the tools to find the best mortgages for every client.

Once you become a Mortgage House client, you receive access to additional products such as the business loan.

Best Interests Duties Conclusion

The best interests duties protect retail consumers. Homebuyers can rest assured that our loan specialists at Mortgage House work in the best interests of our clients. Our goal is to find home loans that put the home buyer in a position to successfully repay the mortgage. Contact our team today.

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