Login
ISCOVER
The new regulation will force mortgage brokers to become financial advisers, Aussie’s CEO has claimed.
Speaking to The Adviser, the brokerage’s chief executive Stephen Porges said brokers will have to do a lot more than sell mortgages under the new National Consumer Credit Protection Act.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
“Looking five years down the line, a mortgage broker will have to make the swap into financial advising. I don’t think a lot of people get that yet and I think some of the mortgage brokers still believe they will be just selling mortgages,” he said.
“Home buyers are savvier than ever. They don’t just want someone that can sell them a mortgage, they want an adviser that understands their financial situation and their financial goals. They want someone that can cater to all their financial needs."
While the regulation will not stop brokers from specialising in a particular area, Mr Porges said the regulation will force brokers further and further away from specialisation.
“I don’t know if the government planned it so this would happen, but indirectly that’s what they’re forcing.”
