Government regulations introduced in 2012 mean that all mortgage brokers need to be registered and qualified as licensed financial advisers, and this one requirement meant that a lot of brokers left the market at the time. The financial examinations that need to be passed are difficult, plus the regulations introduced place obligations on the broker to be part of a dispute resolution process and also to have a formal complaints process within the organisation.
All mortgage brokers in Bay of Plenty today should theoretically be both qualified and registered, about when perusing the websites one may find that a number of brokers do not state explicitly that they are qualified and registered. This may not indicate that they are not qualified and registered, but what it does do is indicate to a potential client that the broker does not believe that it is important to state the fact.
On the other hand many if not most brokers openly display a disclosure statement on their website that includes their full academic qualifications and industry exams that have passed plus their registration certificate and number. Potential clients are well advised to be very careful when choosing a mortgage broker, as a broker who does not openly display their qualifications and registrations may not believe that this is important and therefore may hope that the client does not know that this is actually important. In this case if a potential client is interested in taking on a broker that does not display their qualifications then the client should explicitly ask them about their qualifications and legal ability to practice as a financial advisor.
There is a very large benefit for clients that fully understand their rights when dealing with mortgage brokers in Hamilton, and what they can do is demonstrate that they understand that the time they are discussing the prospect of doing business with them. What this does is lay down the client’s needs at the beginning of the process, and if the broker is indeed not comfortable with their legal obligations then this will come out during the upfront discussions and in that case those brokers should really be avoided.
The brokers that are fully qualified and legally registered, and this should be all of them but perhaps it isn’t, will be in a position to provide a good professional service and a manor that minimises any risks for the client.