Home News Past selling practices could put mortgage professionals in hot water

Past selling practices could put mortgage professionals in hot water

Font size :
Ongoing regulatory changes in the Australian property market might not only reshape the banking and mortgage markets, but also spawn a new industry of firms eager to profit off banks and brokers paying redress to customers in relation to past selling practices.

Speaking at an FBAA event in Sydney, industry veteran Steve Weston compared what is happening right now to past regulatory changes in the United Kingdom.

“The most frustrating thing for the UK market, and I suspect we are going to face it here, is there are things that the industry had been doing for years and that were once viewed as acceptable could be viewed in five of 10 years from now as unacceptable. There will then be a retrospective view, which could be painful for advisers and lenders as occurred in the UK,” Weston said.

“We could see a new industry of ‘ambulance chasers’ as they are referred to in the UK, who receive 25 per cent on whatever they can get back from banks and brokers on behalf of their customers for misselling or poor advice,” he added. “There is a real risk we will see this in Australia so it is very important brokers and lenders are taking steps to safeguard themselves against this.”

With the similarities between the Australian and British mortgage market, such a thing is possible to happen in Australia. Brokers have to make sure that every product they offer to their customers is appropriate even in the long run.

“As a credit adviser or lender, you are the expert. You need to make sure that a product is not only appropriate today but over the long term. That is a big change from what has traditionally been the case,” Weston said.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate

The sprawling redevelopment aims to boost the supply of affordable housing in Sydney Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More Aussies would benefit from regional hubs linked to cities More Aussies would benefit from regional hubs linked to cities Shorter commutes could spur higher home sales in regional towns, analysts say ... Read more

More mortgage news and articles

Sponsored Links

Sunday, Aug 20, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords