Insurers and brokers are warning Australians to beware of unscrupulous brokers that use misleading and deceptive advertising to sell their mortgage products.
The Australian Competition and Consumer Commission (ACCC) says brokers are offering “unscrupulous” mortgage brokers misleading advertising to “get around” the “safeguard” of the Home Insurance Act, which limits the amount an insurance company can charge for mortgages.
“They are putting out ads with no data and it’s quite possible that it’s misleading and misleading to consumers,” ACCC director Paul Butler said.
“In particular, the ads can be misleading to those who are in the mortgage lending industry.”
It’s misleading to people who are not even aware of the protections of the home insurance act.
“We are not saying that these ads are necessarily the worst.
But they’re not what we would consider to be the best.”
The ACCC says brokers who advertise for home insurance products should clearly explain that “unsecured mortgages” will be exempt from the act.
Brokers can also use the information provided in the ads to promote the home-insurance product to consumers, the ACCC warns.
The ACCCs advice comes after a number of Australians were duped into buying their own mortgage products when they didn’t understand the risks of their home insurance policies.
The federal government has promised to update the Home Mortgage Disclosure Scheme (HMDS) to include more accurate and up-to-date information about home-ownership and its risks.
The Federal Government is also introducing a new scheme called Mortgage Guarantee Guarantee Scheme (MGSG) to help people save for their home.
It will include an upfront mortgage payment and help to qualify for a mortgage insurance rebate.
Topics:consumer-protection,mortgage,consumer-finance,housing-industry,financial-market,business-economics-and-fiscal-policy,business,banking,government-and/or-politics,law-crime-and‑justice,health,health-administration,consumer,housing,bureaucracy,australiaFirst posted October 19, 2018 08:01:56Contact Nicola Breen
