Best Interest Duty explained

Best Interest Duty: What It Means for You as a Borrower

When you work with a mortgage broker in Australia, they are legally required to act in your best interests. This is called the Best Interest Duty, and it ensures that your needs - not the broker’s - come first.

Here’s what it means for you:

✅ Your Interests Come First – Your broker must prioritise your financial situation, goals, and preferences over their own commission or incentives.

✅ Suitable Loan Recommendations – They must carefully consider and recommend loans that are right for you, not just any loan you qualify for.

✅ Clear Reasoning – Your broker needs to explain why a particular loan is recommended and how it meets your needs better than other options.

✅ Identify Conflict of Interest – If there are any conflicts of interest that apply (but don't impact your application), these will be clearly advised in the compliance paperwork

✅ Legal Protection – This duty is set out in law (since January 2021) and gives you extra confidence that you’re being treated fairly.