ASIC Mortgage Broker Review 2026: What Borrowers Can Check Now

Short summary

ASIC is reviewing how mortgage brokers comply with the best interests duty. ASIC Commissioner Alan Kirkland discussed the review on 22 July 2026 and said it is expected to finish later in 2026.

No review findings have been released. It would be wrong to claim ASIC has found widespread misconduct or to assume a broker has failed the duty because one loan is cheaper than another.

Borrowers can still use the announcement as a practical prompt. Ask which lenders were considered, why the recommended loan fits the stated needs, what it costs over the likely holding period, which features matter and how the broker is paid.

What ASIC announced

ASIC said its review is examining how mortgage brokers comply with the best interests duty. The regulator has analysed hundreds of complaints made to licensees as part of the work and is also looking at how brokers identify, manage and fix poor outcomes.

ASIC said 81 per cent of new residential mortgages are arranged by brokers. That figure is presented in ASIC's speech and footnoted to industry data, so it should be read as context for the scale of broker distribution rather than an independent ASIC lending series.

ASIC expects to publish observations after the review is complete later in 2026. The regulator said it was too early to discuss those observations in the July speech.

What the best interests duty means

Mortgage brokers must act in the consumer's best interests when providing credit assistance. Where the consumer's interests conflict with the broker's interests, the consumer's interests must take priority.

That does not mean the lowest advertised rate must always be recommended. ASIC said price is highly relevant, but the best outcome can also depend on:

• the loan features the borrower needs;
• approval and settlement timing;
• product restrictions;
• the lender panel available to the broker;
• fees and costs;
• likely use of offset, redraw or extra repayments; and
• the borrower's stated requirements and objectives.

The useful question is not only, "Is this the lowest rate?" It is, "Why is this loan in my interests after price, fees, features and alternatives are considered?"

Read the Best Interests Duty glossary entry for a plain English definition and the limits of the rule.

Seven questions to ask a mortgage broker

ASIC Moneysmart recommends asking detailed questions before accepting a recommendation. A useful written checklist is:

1. Which lenders are on your panel, and which lenders are not?
2. Which products did you compare for this application?
3. Why is the recommended loan in my best interests?
4. What interest rate, comparison rate, fees and discharge costs apply?
5. Which features am I paying for, and am I likely to use them?
6. How are you paid, and does payment differ between the options?
7. Can you show me another suitable option, including a lower-cost option?

Keep the written comparison, credit proposal disclosure and final loan documents. Those records make it easier to check whether the selected product still matches the recommendation.

Worked comparison: a small rate gap

Assume two principal and interest loans for $600,000 over 30 years:

Under a standard monthly amortisation model, the 0.10 percentage point rate gap is about $39 a month and about $13,984 in extra interest if both rates stay unchanged for the full term.

That comparison does not establish which loan is better. A fee, cashback, offset account, refinance after three years, fixed-rate break cost or other feature can change the result. The rates are hypothetical and are not current offers.

Use the Loan Comparison Calculator with the written rates and fees from each option. If an offset product has a higher rate or annual fee, use the Offset Account Break-Even Calculator to test the average balance needed to cover that difference.

What calculators can and cannot verify

RealEstateCalc tools can independently test the arithmetic in a broker scenario:

• Mortgage Repayment Calculator: repayment and total interest at an entered rate;
• Loan Comparison Calculator: two rates, fees and loan structures;
• Refinance Break-Even Calculator: upfront switching costs against estimated savings;
• LMI Calculator: an indicative planning proxy, not an insurer or lender quote; and
• Borrowing Power Calculator: an indicative capacity model, not approval or a lender assessment.

The tools cannot see the broker's lender panel, credit policy, commission, application notes, valuation or reasons for recommending one option. They also cannot decide whether a broker has complied with the law.

If something does not look right

Start by asking the broker to explain the recommendation and the figures in writing.

If the issue is not resolved, Moneysmart says to complain to the broker's business in writing. If that process does not resolve the complaint, the Australian Financial Complaints Authority provides free, independent dispute resolution for eligible complaints.

ASIC's current review is not a complaint service and does not determine an individual home-loan dispute through a calculator or news article.

What remains uncertain

• ASIC has not released its review findings.
• Completion is expected later in 2026, but the publication date is not stated.
• The 81 per cent broker share is attributed by ASIC to industry data.
• A product with the lowest rate may not have the lowest total cost for a particular loan amount or time horizon.
• Broker panels, lender policy, credit assessment and approval outcomes vary.

Sources

• ASIC: The best interests duty, a blueprint for building trust, speech delivered and published 22 July 2026, checked 24 July 2026.
• ASIC Moneysmart: Using a mortgage broker, updated 18 June 2026 and checked 24 July 2026.

General information disclaimer

This article provides general information only. It is not credit advice, financial advice, a loan recommendation, a finding about any broker, a quote, approval or eligibility assessment. Compare written loan documents and speak with an appropriately licensed professional about your circumstances.