When Was Best Interest Duty Introduced?
The best interest duty for mortgage brokers launched into effect on January 1, 2021. It stemmed from the National Consumer Credit Protection Act 2009. The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry took a close look into the practices of mortgage brokers.
Mortgage brokers work on a commission paid to them by the lenders. Every successful mortgage transaction merits them a commission. Sometimes brokers streamline their business. They only represent one lender or a limited set of home loan products. When a home buyer finds a mortgage broker whose products fit their financial circumstances, it’s a great match. Things become dicey when the broker aims to fit the home buyer into the limited set of products.
Australia continues experiencing economic chaos. Homeowners receive the brunt of the downfall. Therefore, every homebuyer needs to obtain the best loan terms for their financial circumstances.
Mortgage House remains an innovator in the home loan lending market. Our loan specialists have tools that help them evaluate every application thoroughly. Then, they test the home buyer’s finances with several lender ratios. Moreover, if the initial loan terms are not the most favourable, ways to improve them exist including refinancing your home loan.
Best Interest Duty Conclusion
The best interest duty protects home buyers. It ensures that mortgage brokers work from their client’s best interests instead of the lenders. Mortgage House loan specialists work in the interests of home buyers and investors. We also work with mortgage brokers and the clients that they represent.