By: Staff Reporter
Loan Market Group has thrown its support behind the industry’s move from broker to 'adviser'.
According to the brokerage’s chief operating officer Dean Rushton, the new laws will enhance consumer “regard for the mortgage broking sector”.
Under national credit reforms, anyone engaged in credit advice on home loans will need to register with the Australian Securities and Investment Commission (ASIC) between April 1 and June 30, 2010, or be appointed as a representative.
Registered credit participants will then have six months between July 1 and December 31, 2010, to apply for an ACL.
“Brokers are a major part of the home finance industry and there has been a huge growth in people relying on brokers when they take out a new home loan or refinance,” Mr Rushton said.
“The broker’s job is to make the task of purchasing a property and obtaining finance as stress-free as possible. Brokers who meet the needs of their clients and maintain customer focus help give the industry a good name.”
Mr Rushton said with interest rates on the rise, consumers were shopping around for the best deal and, in turn, starting to understand the benefits of using a broker.
“With brokers expected to play an even more influential role in the provision of home loans, a new national licensing system which enhances their credibility is a great step forward,” he said.
“An experienced mortgage broker is best placed to advise customers on the range of options available and in the current market there is plenty for prospective home buyers to choose from.
“Lenders will appreciate that a broker can provide them with the right information and do a lot of the leg work in securing the home, personal or business loan.”