ASIC releases BID review findings
The Australian Securities and Investments Commission (ASIC) has released its long-awaited review of the industry’s compliance with the best interests duty (BID).
The report, Mortgage brokers: Review of best interests duty and complaints handling practices, examines how credit licensees and aggregators oversee BID and internal dispute resolution obligations.
ASIC reviewed 7,000 documents from eight major aggregators covering April 2023 to March 2025, including recommendations where brokers did not select the cheapest shortlisted loan and files where only one option was presented.
Nearly three-quarters of recommendations with a projected five- year cost difference below $1,000 raised no concerns.
However, 43.9 per cent of recommendations costing more than $20,000 extra attracted ASIC’s highest level of concern, often due to generic justifications or missing cost comparisons.
The review also identified inconsistencies in loan cost calculations and difficulties in capturing negotiated discounts and promotional cashbacks.
ASIC stressed that recommending a more expensive loan does not automatically breach the BID, but brokers must document why its features or other benefits offer realistic value to the borrower.
Help to Buy broker access grows as fourth lender joins
A new lender has joined the Help to Buy lending panel, opening another broker pathway into the shared-equity scheme.
Queensland Country Bank became the fourth authorised lender, joining Commonwealth Bank of Australia, Bank Australia, and Teachers Mutual, enabling eligible buyers to access the scheme through its retail and broker channels.
Help to Buy allows eligible buyers to purchase a home with a minimum 2 per cent deposit without lenders mortgage insurance (LMI).
The government contributes up to 40 per cent of the price of a new home, or up to 30 per cent for an existing property.
Housing Australia reported more than 7,200 applications in its July update, with around 4,800 having settled or found a property. First home buyers accounted for 86 per cent of participants, while almost 70 per cent of applications came from single applicants.
Queensland Country Bank chief executive Aaron Newman said the scheme would help address housing affordability and support more members into home ownership.
Corporate regulator to review referrer programs
ASIC has said it would review bank referrer programs, proprietary-lender incentives and lenders’ oversight of mortgage brokers as part of its 2026–27 banking-sector supervisory agenda.
The review comes amid heightened scrutiny of bank introducer arrangements following recent mortgage fraud revelations.
Expected to commence in the third quarter of the 2026–27 financial year, the review will examine the broader mortgage-origination chain, from bank-employed lenders and third-party referrers to accredited broker channels, as well as the controls lenders use to identify concerning lending patterns.
ASIC said it would assess whether changes to bank remuneration structures, the use of referrers and lenders’ supervision of brokers were creating conduct or consumer-outcome risks.
“We will commence a review into various aspects of lender conduct,” ASIC said.
“This is likely to focus on the impact of the short-term variable remuneration changes for proprietary lenders introduced by banks in 2024, the use of referrers by lenders, and lender oversight of brokers.”
MFAA membership climbs amid growing demand for brokers
The Mortgage and Finance Association of Australia (MFAA) has grown its membership by 4.1 per cent in FY2025–26.
The association’s 2025–26 annual report recorded 16,842 members at 30 June 2026, up from 16,172 a year earlier. However, membership growth moderated from 5.17 per cent in the previous financial year.
Mortgage and finance brokers accounted for 97 per cent of members, while the gender split was 71 per cent male and 29 per cent female.
The growth came as brokers facilitated a record 81.6 per cent of new residential home loans in the June 2026 quarter, according to MFAA-commissioned Cotality data.
MFAA CEO Anja Pannek said growing consumer reliance on brokers highlighted the importance of investing in businesses, capabilities and professional standards.
“More Australians are choosing brokers to help them understand their options and navigate important financial decisions,” Pannek said.
“That trust is earned through the work our members do every day. Our role is to support them with strong advocacy, practical education and resources.”
