ASIC finds 20% of brokers skip cheapest home loans
ASIC found one-fifth of brokers failed to recommend the lowest-cost home loan option.
The Australian Securities and Investments Commission looked at 13 credit licenses. The 13 credit licenses covered eight large broker groups representing two-thirds of all brokers in the country.
In 20 per cent of cases, brokers did not recommend the lowest-cost loan option to customers. ASIC also found cases where brokers lacked clear proof to support their recommendations for more expensive loans.
Mortgage brokers must act in customers' best interests under the National Consumer Credit Protection Act. Brokers say a more expensive loan can sometimes offer better value through better features, not just price.
ASIC also found that complaints about best interests duty took longer to resolve than other complaints. Some were missed or withdrawn without full investigation.
- 20 per cent
- Brokers not recommending cheapest
- 13
- Credit licenses examined
- 8
- Large broker groups covered
- Two-thirds
- Share of all brokers nationally
Why it mattersIf your broker recommends a more expensive home loan, make sure they can clearly explain why. You could end up paying thousands extra over the life of the loan.
AustraliaAustralians borrow via brokers for over 80 per cent of home loans, making mortgage broker decisions central to how much Australians pay for their biggest debt.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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