With the current––stricter––guidelines for brokers, it looks like borrowers are seeing even more benefits in using a mortgage broker over a bank.
Now that brokers are legally required to act in their best interests–something banks aren’t required to do –we’ve seen a large shift in the numbers of borrowers that choose to use a broker over a bank.
Mortgage brokers settled 59% of all new home loans in the June quarter of 2021 – a record market share for brokers in the June quarter.
That compares to a market share of 57% in the June 2020 quarter.
Last year, ASIC, the financial services regulator, introduced the best interests duty, which obliges brokers (but not banks) to act in their clients’ best interest when providing home loan advice. While we have always ethically held that responsibility at TM Finance Group, the fact that it is now a *legal* requirement presents better for clients.
The Mortgage & Finance Association of Australia said the increasing popularity of brokers reflects “the ever-increasing trust and confidence consumers have in their broker, and the unrivalled best interests duty a mortgage broker provides”.
The difference for borrowers is, when you visit a lender––regardless of whether their offerings are competitive, you’ll be told only about that specific lender’s products. But when you visit a mortgage broker, we will be able to compare home loans from a range of institutions.
If you’ve been having trouble finding what you need from your current lender, or perhaps you’re just curious about what’s out there for you, give us a call today and we can assess your unique situation and find you a lender that fits.