Mortgages

Broker not necessarily totally unbiased

Mortgage Choice in Australia has been censured by an Australian regulator for using the word "unbiased" in its advertising and could be forced to pay compensation to up to 50,000 of its customers.

Sunday, June 06th 2004

Last week, the Australian Securities and Investments Commission (ASIC) accepted an enforceable undertaking from the broker that it would not use the word "unbiased" in advertising unless it made clear that it only sold products from 27 lenders who paid it commissions.

Mortgage Choice, which is a different company from the New Zealand one of the same name, has been claiming in published material since October 2002 that it is "totally unbiased," that it provides "unbiased home loan advice" and that its brokers are "paid the same regardless of which lender or loan you choose."

ASIC decided these claims were misleading and deceptive "given that Mortgage Choice and its franchisees only receive commission from, and provide advice in relation to lenders on its panel, and do not receive commission from, or provide advice in relation to lenders who are not on the panel," the regulator said last week.

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Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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