Great news for anyone planning to take out a home loan – new legislation means consumers are even better protected when they use a mortgage broker.
Brokers must “prioritise their consumers’ interests” if there’s ever a conflict of interests, according to the legislation.
But while brokers have to follow the Best Interests Duty – banks do not. A broker must give their client the best possible recommendation from all the lenders on that broker’s panel. However, a bank will recommend only its own products, even if there are better alternatives.
Brokers act in your best interests when recommending a home loan, and have a legal obligation to do so. Banks sell you products.