If you are considering taking out a home loan in Sydney, it is important to carefully select a mortgage broker you can trust. The best way to do this is simply to employ the services of a licensed agent to help you find the best available deal to suit your needs.
This is a process that could become much easier, as the Australian Securities and Investment Commission has begun stamping down on unlicensed lending institutions.
Since introducing a new uniform national system on July 1 last year, the regulator has licensed 6,091 businesses, whilst rejecting 400 applications and persuading 637 others to withdraw.
Greg Kirk, senior executive leader at ASIC for deposit takers, credit and insurers, asserted to the Australian yesterday: “We have active processes to identify lenders operating unlicensed outside the regime.”
This shapes as good news for consumers, who are likely to feel an increased sense of confidence when seeking assistance with home loan comparisons or mortgage refinancing.
Mr Kirk also stated that responsible lending was a significant focus of the new regime, with credit providers obliged to make inquires about the financial position of borrowers and prohibited from allowing “unsuitable” loans.