Great interest rates and best interest duty
Record low interest rates and a booming property market is lighting a fire under mortgage brokers right now. Our services are in high demand, with 3 in 5 home loans going through a broker these days.
It hasn’t been all rainbows and unicorns, though. Two years ago we weren’t even sure if we’d be allowed to write loans for the major banks following the Royal Commission into financial services, and sweeping changes challenged our very existence.
Why use a broker?
Well, we can think of a couple of thousands reasons, but it’s still a common question. Firstly, we have a suite of lending institutions at our fingertips from which you can pick and choose based on the interest rate, fees, terms, and how well you align with the lender. Better still, we’re now required by law to act in your best interests. To be fair, we’ve always done business this way: placing our client’s needs front and centre.
What does best interest mean?
It means no matter what benefits we receive, we have to help you with the most appropriate product. If we don’t, we risk fines, losing our accreditation, or even jail time. So, it’s pretty serious and it’s designed to help you obtain better financial services and strengthen the overall lending system.
Do the banks have to work in your best interest?
No, they don’t. And while there are plenty of good bankers out there, they are hamstrung with what they’re able to offer their customers. Instead of scouring the market for a solution that meets their customer’s needs, they can only choose from a handful of products.
Credit is important for a growing economy
Access to credit is a fundamental catalyst to a growing economy and especially when that economy is recovering from the Covid lockdown. The government wants to encourage use of lending but in a way that protects consumer interests.
Best interest duty is about creating a better more responsible lending environment that’s client-centric and with long-term benefits to strengthening the overall economy. That’s a good thing for you – so now you get access to historically-low interest rates but you’ll be protected by the best interest duty. Happy days!
Get in touch for help securing finance that serves your interests.