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Brokers Help Settle a Record 7 in 10 | Zippy Financial

Mortgage brokers have notched up a new personal best, with seven out of every 10 new mortgages settled thanks to their help! This is a sure sign that mortgage brokers are delivering the goods when it comes to helping Australians move into their dream homes. 

According to the latest data from the MFAA, in the nine months to 31 March 2023 (whilst interest rates were rising), mortgage brokers helped settle more than 70% of all new residential home loans.  

It is the first time ever that brokers have helped settle more than 70% of home loans over a three-month-plus period. For context, just two years earlier, brokers were helping settle between 50-60% of new home loans.  

Why are more Australian home buyers turning to mortgage brokers?

For starters, it looks like word is getting out about how much help we can provide when it comes to giving an informed choice with your home loan. And in this environment of higher interest rates, it is important to be sure your home loan offers value.  

With a wide network of lenders, including big banks, small banks and non-banks, brokers are well-placed to help you choose the loan that is right for you.  

It does not end there. Here are five more reasons why Australians are turning to brokers for help…  

1. Brokers to the legwork 

There are hundreds of home loans to choose from, but who has got the time to find a loan that suits your needs? Your broker does!  

Better still, your broker does a lot of the legwork, sorting the paperwork and supporting your loan application right through to settlement. This lets you sit back, relax and focus on moving into your new home. 

2. Brokers are flexible 

You are busy, right? That is why brokers offer flexible appointment times. What to chat after hours? No problem. Prefer to chat online rather than face-to-face? Can do.  

It may seem like a minor benefit, but the flexibility brokers offer is a big deal when you are flat out with work, family, or just busy house hunting.  

3. Brokers provide tailored facts 

Brokers provide clear details to help you make informed decisions. From your borrowing power, to how much of a deposit you really need, and what your loan repayments will be under various scenarios, we will crunch the numbers based on your unique situation. It takes the guesswork out of buying a home and lets you plan ahead. 

4. There are no additional costs and a best interests duty 

It often comes as a surprise that a broker’s home loan help comes at no cost to their clients. That is because brokers are paid a commission by lenders.  

Unlike the banks, we are (happily) bound by a best interests duty which means we will always put your best interests first.  

So, while banks and digital lenders might try to tempt you with cashback offers for loan products that may not really be in your best interests (due to fees, high interest rates, and other undesirable loan terms), we will only ever match you up with lenders and loans that are in your best interests.  

5. Brokers keep working for you over the long term 

Chances are that you will have your home loan for quite a few years. We will be with you along the way to help make sure your home loan continues to be the right option for you, no matter how your life changes.  

Call us today to see why more Australians than ever are partnering with a broker.  

FAQ

A: Mortgage brokers have achieved a new milestone by helping settle over 70% of all new residential home loans in the nine months leading up to 31 March 2023.

A: Australians are increasingly seeking the expertise of mortgage brokers due to their ability to provide informed choices, especially in an environment of rising interest rates, ensuring home loans offer value.

A: Brokers assist in finding a loan that suits the buyer’s needs, handle the legwork of sorting paperwork, and support the loan application through to settlement, allowing buyers to focus on moving into their new homes.

A: Brokers offer flexible appointment times and are willing to communicate through various means, including after-hours chats and online consultations, accommodating the busy schedules of their clients.

A: Brokers provide clear, tailored information based on the client’s unique situation, including details about borrowing power, deposit requirements, and loan repayment scenarios under various conditions.

A: Surprisingly to many, a broker’s home loan assistance typically comes at no cost to the client, as brokers are paid a commission by the lenders.


Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

About the Author:

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilizes her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.

Connect with Louisa on Linkedin.

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.

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Banks and Brokers Offering Interest Advice | Zippy Financial

The Role of Banks and Brokers in Offering Best Interest Advice
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The Role of Banks and Brokers in Offering Best Interest Advice

Parental Gurantee

In today’s complex financial landscape, the advice we receive can significantly impact our financial well-being. While many turn to their trusted banks for guidance, it’s essential to understand the nature of the advice offered. Contrary to popular belief, banks aren’t always legally obligated to provide advice in the best interests of their customers. This is where the role of mortgage brokers, bound by the Best Interest Duty, becomes paramount. Let’s delve into the intricacies of interest advice and how banks and brokers, including their role in asset finance, differ in their approach. 

The Reality of Banking Advice

Banks have long been the go-to institutions for financial guidance. However, their primary objective is to promote and sell their products. While they may offer interest rate advice, it’s typically aligned with their suite of products. This doesn’t necessarily mean the advice is detrimental, but it’s essential to recognize that banks aren’t legally bound to offer the best advice tailored to individual needs. It’s a subtle distinction but one that can have profound implications for consumers.

The Evolving Role of Mortgage Brokers

Enter mortgage brokers. These professionals have undergone a significant transformation, especially with the introduction of the “Best Interest Duty.” Effective from 1st July 2020, this duty ensures that brokers prioritize the needs of borrowers above all else. Unlike banks, brokers are now legally required to act in the best interests of their clients. This shift is a game-changer for consumers. It means that when you seek interest advice from a broker, you’re receiving guidance that genuinely aligns with your financial situation and goals.

Why Best Interests Duty Matters

The importance of the Best Interests Duty cannot be overstated. For consumers, this means receiving advice that’s tailored to their unique circumstances. Whether it’s about interest rates, loan types, or repayment strategies, a broker’s guidance is holistic. They consider a wider range of options, potentially leading to better financial outcomes. In essence, the Best interest advice is not just a legal obligation for brokers; it’s a commitment to ensuring clients’ financial prosperity.

Client-Centric Advice Tailored to Unique Circumstances

  • Personalized Financial Guidance: The Best Interests Duty ensures that financial advice is tailored to each client’s specific situation, including their financial goals, income, and expenses.  
  • Holistic Consideration: Brokers, guided by this duty, look beyond simple loan recommendations and consider a wide range of options that encompass interest rates, loan types, and repayment strategies.  
  • Better Financial Outcomes: By providing client-centric advice that takes into account all relevant factors, brokers can potentially lead clients to better financial outcomes, including more favorable loan terms and lower long-term costs. 

Legal Obligation with Client Prosperity in Mind

  • Compliance and Legal Requirement: The Best Interests Duty is a legal obligation for mortgage brokers, ensuring they act in the best interests of their clients. This duty is designed to protect consumers from potentially harmful or inappropriate financial advice.  
  • Commitment to Prosperity: Beyond compliance, the Best Interests Duty represents a commitment by brokers to the financial prosperity of their clients. It underscores the importance of ensuring that clients are in the best possible financial position.  
  • Long-Term Financial Well-Being: Brokers who embrace this duty prioritize the long-term financial well-being of their clients by offering advice that aligns with their unique circumstances and goals

Making Informed Decisions 

With the evolving landscape of financial advice, consumers must be proactive. It’s crucial to understand where your advice is coming from. While banks offer valuable insights, remember that they have sales targets. On the other hand, mortgage brokers provide independent, unbiased advice, ensuring you make informed decisions. When considering financial products or services, especially those related to interest rates, seeking a broker’s expertise can be invaluable.

 Navigating the world of finance can be daunting. However, understanding the role and obligations of those offering advice can make the journey smoother. While banks play a crucial role in the financial ecosystem, it’s the mortgage brokers, bound by the Best Interest Duty, who stand out when it comes to offering tailored, best interest advice. As consumers, it’s our responsibility to seek out advice that truly aligns with our best interests, ensuring a brighter financial future.

Frequently Asked Questions

What is the primary role of banks and brokers in the financial industry?

Banks and brokers play a crucial role in the financial sector by providing various financial products, services, and advice to consumers. While banks offer a range of financial services, including loans and savings accounts, brokers typically act as intermediaries, connecting borrowers with lenders.

How do banks ensure they offer advice in the best interest of their clients?

Banks have a fiduciary duty to act in the best interests of their clients. They achieve this by conducting thorough assessments of a client’s financial situation, understanding their needs and goals, and providing recommendations that align with the client’s best interests.

What sets mortgage brokers apart from traditional banks?

Mortgage brokers act as intermediaries between borrowers and lenders. They have access to a wide range of loan products from various lenders, allowing them to find the best fit for a client’s specific needs, often at more competitive rates than traditional banks.

Are there regulations in place to ensure best interest advice?

Yes, there are stringent regulations in place that mandate banks, brokers, and other financial institutions to act in the best interests of their clients, ensuring transparency, fairness, and ethical conduct.

How can consumers ensure they’re receiving the best interest advice?

Consumers should seek out reputable banks or brokers, ask questions, request transparency on fees and commissions, and, if possible, consult with multiple financial professionals to compare advice and offerings.

Can I switch brokers or banks if I’m not satisfied with the advice provided?

Yes, consumers have the freedom to switch brokers or banks if they feel the advice or service provided doesn’t align with their best interests or needs.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

RELATED ARTICLES 

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