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Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →ASIC found that mortgage broker remuneration practices created conflicts of interest that may contribute to poor consumer outcomes. It did not find that every broker acted against a borrower’s interests, or establish that using a broker alone caused the differences it observed between borrower groups. The findings came from ASIC’s 2017 review; a statutory best interests duty for brokers took effect later, on 1 January 2021.
What ASIC found about mortgage brokers
ASIC’s Report 516 (REP 516), released on 16 March 2017, examined how existing mortgage broker remuneration structures affected consumer outcomes and proposed changes intended to improve consumer and market outcomes. In a later summary of the review, ASIC said remuneration practices created conflicts of interest that may contribute to poor outcomes. ASIC’s 2019 summary of the findings describes differences between borrowers who used brokers and those who went directly to lenders.
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- Broker-channel borrowers borrowed more and had higher loan-to-valuation ratios.
- They spent more of their wages on mortgage payments and took out more interest-only loans.
- They obtained the same interest rate as customers who went directly to lenders.
These are group-level differences reported by ASIC, not proof that broker use caused each one or that an individual broker committed misconduct. The findings also do not mean that a broker cannot help a borrower find a suitable loan.
What ASIC’s later consumer research added
In 2019, ASIC reported separate consumer research: it followed more than 300 consumers as they took out a home loan and surveyed another 2,000. The findings below belong to that 2019 research, not to the 2017 remuneration review. ASIC’s release said:
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- One in five consumers believed they could have obtained a better home-loan interest rate, or were unsure whether they had obtained a good rate. This figure was about consumers generally, not only broker customers.
- Among consumers who went directly to a lender, 69% used a lender with which they already had a relationship.
ASIC Commissioner Sean Hughes said consumers should be able to meaningfully compare loan options and understand how a broker selected a home loan. Those concerns help explain why a rate alone does not answer whether a recommendation suits a particular borrower.
What a broker’s best interests duty requires
When ASIC published Regulatory Guide 273 (RG 273) in June 2020, it explained how brokers should meet the statutory best interests duty and the related conflict priority rule. The legislation was passed in February 2020, and the obligations applied from 1 January 2021—after REP 516 was published.
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- SPEAKS YOUR LANGUAGE: Keys clearly labeled in residential mortgage finance terms like Loan AMT, Int, Term, PMT. This industry-standard calculator is super easy to use on all realty financing matters from finding a loan that works for your client to considering trust deeds investments, or finding remaining balances or balloon payments and much more
- CONFIDENTLY AND EASILY SOLVES: All your clients' financial questions whether they are buyers, sellers, investors or renters. Increase your perceived professionalism as a new agent, experienced broker or seasoned loan officer. Close more home sales and impress your clients with fast, accurate answers to all their real estate finance questions
- DEDICATED BUYER QUALIFYING KEYS: Enter client's income, debt and expenses to pre-qualify them to only show properties they can afford. Include tax, insurance and mortgage insurance then compare loan options and payment solutions to give your client choices before they make an offer to buy
- FIGURE OUT THE RIGHT LOAN: At the press of a button for jumbo, conventional, FHA/VA, or even 80:10:10 or 80:15:5 combo loans; check to see if ARMs or bi-weekly loans, quarterly payments or if interest-only payments are the answer; giving your client more choices; easily perform what if loan or tvm calculations Find loan amount, term, interest or PITI or PI payments
- BECOME AN INVALUABLE RESOURCE: Reduce your clients' confusion and uncertainty; ensuring they are able to make a purchase offer; knowing they can afford the down payment; and determining which is the right loan for them. Date-math for listings and contracts too. Comes with a protective slide cover, quick reference guide, pocket User's Guide, and long-life batteries
Under RG 273, a broker must assess what is in each consumer’s best interests in light of that person’s circumstances, needs, goals and financial situation. ASIC expects brokers to gather relevant information, consider available products individually, explain why a recommended product is in the consumer’s best interests and keep records. In most instances, ASIC says the broker should present more than one option.
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The best interests duty operates alongside responsible lending obligations; they are separate requirements. A loan being assessed as “not unsuitable” under responsible lending rules does not, by itself, establish that recommending it is in the consumer’s best interests. A broker’s own or related-party interests can be served only when the assistance is also in the consumer’s best interests.
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- DEDICATED FUNCTION KEYS for Quick Financial Solutions: Clearly labeled function keys enable you to quickly and confidently provide financial answers and options for your clients, whether in the office, in the car or at an open house. Compare loan options and provide payment solutions to give your client choices
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- RESIDENTIAL REAL ESTATE FINANCE TERMS: Keys labeled in residential real estate finance terms like Loan AMT, Int, Term, PMT; Calculator is super easy to use to determine a mortgage loan that works for your client
- VERSATILE LOAN CALCULATION OPTIONS: Calculate 80:10:10 or 80:15:5 combo loans at the press of a button; check to see if ARMs or bi-weekly loans, quarterly payments or if interest-only payments are the answer; giving your client more choices
- COMES COMPLETE: Comes with a protective slide cover, quick reference guide, pocket user's guide, two long-life batteries, and 1-year warranty
How to assess a broker’s recommendation
Ask the broker to explain how the recommendation fits your priorities, rather than focusing only on the headline rate. Depending on your circumstances, a meaningful comparison may cover:
- Total cost: interest rate and the loan’s overall price, including relevant fees.
- Loan structure: amount, term and repayment flexibility.
- Features: whether an offset account or bundled products are useful to you, and what they cost.
- Practical fit: lender service and how the loan accommodates your needs and financial circumstances.
- Choice of lenders: which lenders and products the broker can access, and whether that access limits the options considered.
Ask which alternatives were considered and why they were not recommended. You can also ask how the recommended loan compares on total cost and features, and whether any relevant relationship or interest influenced the recommendation. The appropriate trade-offs depend on the borrower; there is no single “best” loan for everyone.
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- SPEAKS YOUR LANGUAGE: Keys clearly labeled in residential mortgage finance terms like Loan Amt, Int, Term, Pmt; this industry-standard calculator is super easy to use on all realty financing matters from finding a loan that works for your client to considering trust deeds investments, or finding remaining balances or balloon payments and more
- CONFIDENTLY AND EASILY SOLVE: Clients' financial questions whether they're buyers, sellers, investors or renters. Increase your perceived professionalism as a new agent, experienced broker or seasoned loan officer. Close more home sales and impress your clients with fast, accurate answers to all their real estate finance questions from PITI Payments to IRR, NPV and Cashflows
- DEDICATED BUYER QUALIFYING KEYS: Enter client's income, debt and expenses to pre-qualify them to only show properties they can afford. Include tax, insurance and mortgage insurance then compare loan options and payment solutions to give your client choices before they make an offer to buy
- FIGURE OUT THE RIGHT LOAN: For your client at the press of a button for jumbo, conventional, FHA/VA, or even 80:10:10 or 80:15:5 combo loans; check to see if ARMs or bi-weekly loans, quarterly payments or if interest-only payments are the answer; giving your client more choices; easily perform what if loan or TVM calculations find loan amount, term, interest or PITI or PI payments
- BECOME AN INVALUABLE RESOURCE: To your clients by reducing their confusion and uncertainty; ensuring they are able to make a purchase offer; knowing they can afford the down payment; and determining which is the right loan for them. Date-math for listings and contracts too. Comes with a protective slide cover, quick reference guide, pocket user's guide, and long-life battery
What the 2017 finding does—and does not—mean today
REP 516 was a review of remuneration structures and their potential effects, not a finding that every mortgage broker acted against consumers. ASIC’s later consumer research documented uncertainty about loan rates, while the statutory duty that began in 2021 established a subsequent legal framework for broker conduct. These are distinct developments, and the 2021 obligations should not be read back into the 2017 report.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchASIC’s RG 273 is the guidance version published in June 2020. For a current legal question, check ASIC’s latest guidance and the legislation in force rather than relying solely on that dated guidance.
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- Extra large 12-digit angled display.
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