With brokers now legally required to act in the best interests of borrowers – something banks aren’t required to do – borrowers have been turning to brokers in increasing numbers.
Mortgage brokers settled 59% of all new home loans in the June quarter – 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.
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”.
When you visit a lender, you will be told only about that lender’s products. But when you visit a mortgage broker, you will be able to compare home loans from a range of institutions.