Hi All,
When comes to engaging a Mortgage Broker, do we have to sign a "Finance Broking Contract" with the Mortgage Broker?
Is that a industry standards in all states?
On the contract, quoting 'a fee payable in the event the appointment is terminated prior to the expiry date'?
I was told that i have to sign this contract in order for the Broker to represent me to the lender.
Cheers
NitVaries from State to State.
In Qld there is absolutely no requirement whatsoever.
Where are you based ?
Richard Taylor | Australia's leading private lender
Qlds007 wrote:Varies from State to State.In Qld there is absolutely no requirement whatsoever.
Where are you based ?
Victoria. Any clue?
Each state has their own set of regulations at the moment relating to mortgage broking. Currently, I believe, brokers in Victoria are required to give their clients a document to sign appointing them to negotiate on behalf of their clients – this is supposed to outline any fees.
The current regulations outline that brokers can charge anything they want – and if someone agrees to it, then it's up to them. It sounds like your broker is complying with the rules, however they sound like they want you to pay a fee if you walk away.
There are plans for national regulation, but it's taking it time getter here.
For more information, Consumer Affairs in Vic have a section on their web site dedicated to mortgage brokers and VIC regulations. You can find it here: http://www.consumer.vic.gov.au/CA256EB5000644CE/page/Business+Licensing+%26+Regulation-Credit+Providers-Finance+Brokers?OpenDocument&1=30-Business+Licensing+%26+Regulation~&2=40-Credit+Providers~&3=10-Finance+Brokers~
FinSpec wrote:Each state has their own set of regulations at the moment relating to mortgage broking. Currently, I believe, brokers in Victoria are required to give their clients a document to sign appointing them to negotiate on behalf of their clients – this is supposed to outline any fees.The current regulations outline that brokers can charge anything they want – and if someone agrees to it, then it's up to them. It sounds like your broker is complying with the rules, however they sound like they want you to pay a fee if you walk away.
There are plans for national regulation, but it's taking it time getter here.
For more information, Consumer Affairs in Vic have a section on their web site dedicated to mortgage brokers and VIC regulations. You can find it here: http://www.consumer.vic.gov.au/CA256EB5000644CE/page/Business+Licensing+%26+Regulation-Credit+Providers-Finance+Brokers?OpenDocument&1=30-Business+Licensing+%26+Regulation~&2=40-Credit+Providers~&3=10-Finance+Brokers~
Thnx for explaining mate.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
