How you’re protected
The laws surrounding home loans, lending, and other kinds of credit are continually revised with stricter rules frequently being imposed on mortgage lending.
In this article, we outline what the National Consumer Credit Protection Act 2009 (NCCP) means and how it benefits you as a borrower.
Regulating lenders and mortgage brokers
The NCCP legislation aims to protect you by ensuring ethical and professional standards in the finance industry. All lenders and mortgage brokers are required to hold a credit license or to be registered as an authorised credit representative of a credit license holder.
The Australian Securities and Investments Commission (ASIC) enforce these rules for lenders and mortgage brokers. ASIC regularly audits lenders and mortgage brokers to ensure we adhere to the rules set out in the NCCP.
At Get Real Finance we strictly adhere to the NCCP’s professional standards. We are strong advocates of high ethical standards in mortgage broking and the finance industry, so you can rely on us to give you professional support and advice on your mortgage and other credit needs.
Regulating how we do business with you
When you apply for a mortgage through us, we’re required to follow a specific process under the NCCP rules, to ensure you get the best result under ‘Responsible Lending’. When suggesting mortgage products to you, the NCCP requires us to:
- Make enquiries into your financial position, requirements, and objectives.
- Verify your financial position.
- Make a preliminary assessment using the information gathered in steps 1 and 2 above, about what loan types are appropriate and suitable before recommending them to you.
What makes a loan product ‘unsuitable’?
To protect your interests, the NCCP defines situations where a contract or product will be unsuitable to be either:
- You may be unable to meet the loan repayments or may only be able to meet them with substantial hardship.
- The loan does not meet your requirements or objectives.
This is why we spend so much time and effort getting to know you, and your financial position before we start organising or enquiring into loans. To be responsible and make a reasonable assessment about whether a loan product is suitable for you, we must fully understand your personal circumstances and financial position.
People often enquire wanting to know what the best interest rate is available that day. Giving such a quote is irresponsible—and most likely inaccurate. It’s only when we’ve made enquiries into your personal circumstances and financial position that we can put together a selection of appropriate loans to help you choose the most advantageous interest rate.
Documentation we must provide to you
Under the NCCP rules, once it’s apparent we have a business relationship, we’re required to provide you with comprehensive information. That’s why our Credit Guide for each mortgage broker in our team sets out important information about us and the services we provide to you as your broker. The Credit Guide outlines the information we need from you to make the preliminary assessment outlined above. It also tells you what to do if you have a complaint and how to get it heard and resolved.
Additionally, if you’d like a copy of our preliminary assessment (and we haven’t given it to you already), you can request a copy from us at any time.
Talk to us, we’re the professionals you can rely on!
As your mortgage broker, we aim to provide you with truly professional assistance in your financing needs. With the highest ethical standards in place, you can rely on us to help you get the right home loan for your personal circumstances and financial goals.
Click here to find out more about how ASIC regulates lenders and mortgage brokers. If you’d like more about the NCCP legislation, click here.
Of course, if you have any questions or you’d just like to talk about your rights as a borrower, we’ll be happy to help—just call or email us.
