When you are searching for a mortgage broker to trust with your personal finance needs, it is vital that you ensure they are carrying out business with a license. If a broker has not fulfilled their licensing requirements, they could be placing you, as their client, in an unpredictable position.
A mortgage broker undertakes the responsibility of finding you a deal that suits your particular financial situation. A broker whom is unlicensed may not possess the knowledge to make an informed decision, potentially providing their client with a level of lending that is unsustainable for that client’s income. This compromises their client in the process. The nature of a mortgage broker’s job is to deal with significant loan amounts, further highlighting why it is crucial to find a licensed broker who can be transparent and truthful in their conduct.
Licensing requirements that you should be aware of whilst searching for a mortgage broker are whether the broker holds either an Australian Credit Licence (ACL), or is a credit representative of a licensee (aggregator). Certified brokers must also have completed and gained a Certificate IV in Finance and Mortgage Broking. A mortgage broker that has gained all relevant qualifications will possess the qualities and the skills needed to guide and assist you with your mortgage brokering needs at a highly capable level. It is also necessary for a broker to be equipped to answer any question you may have, where an unlicensed broker may provide you with false or inaccurate advice.
The ASIC Connect; Professional Registers website allows you to search your potential mortgage broker on three lists; Credit Registered Person, Credit Representative and Credit Licence. If your broker is not displayed on one of these lists, they are operating illegally without a licence.
Brokery offers a library of mortgage brokers, and we endeavour to ensure they have fulfilled the Australian licensing requirements, making it easier for you to find a reputable broker that you can trust with your personal financial needs. This service is provided to lessen the burden of you researching an array of mortgage brokers to find one whom complies with the Australian licensing requirements.
It's all about trust.
Author: Kayla Trajanovski
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