ASIC puts home loan recommendations under scrutiny. How Bheja helps you check yours

ASIC wants brokers to clearly explain why they recommend a home loan, especially when a cheaper option could meet the borrower’s needs.

Its review covered 13 credit licensees across eight large aggregator groups. Seven groups reported that brokers chose a loan that cost more than another option they compared in over 20% of cases.

That does not mean those borrowers received the wrong loan. Features, eligibility and other needs can justify paying more. But the broker should explain the benefit.

ASIC examined 1,600 recommendations where brokers either chose a higher-cost loan or presented only one option. It reviewed the reasons recorded in aggregator systems, so brokers may have held additional information elsewhere.

The regulator found room to improve those explanations and the data supporting comparisons. It found no indication that brokers favoured lenders paying higher commissions.

For borrowers, the takeaway is simple: if a loan costs more, you should understand what makes it worth paying for.

Brokers generally compare loans from their lender panel, then narrow the options based on your eligibility, required features and approval timeframes. Their comparison does not cover every loan in the market.

The cheapest option may not meet your needs. Someone with complex income may need a lender with suitable assessment criteria. An offset account may benefit someone who keeps substantial savings in it.

The important question is whether those benefits justify the extra cost. For an offset loan, that means weighing the potential interest savings against any higher rate and fees.

ASIC also identified practical challenges. Some tools required brokers to manually enter negotiated discounts, while some licensees struggled to track changes between recommended and final loan details.

A comparison can also become dated after settlement. Your circumstances and lender offers may change, making it worth checking whether your loan still offers good value.

ASIC calls for accurate comparison data, clearer reasons for higher-cost recommendations and stronger oversight. It also sees potential for AI to identify better products, savings and eligibility, while keeping brokers accountable for their recommendations.

For borrowers, technology can make checking a mortgage easier. Human assessment helps establish whether an option fits their circumstances.

That combination already forms part of Bheja’s approach.

Before ASIC published its latest report, Bheja already offered borrowers a way to check their existing mortgage directly and monitor for lower rates. Bheja’s AI-powered platform uses Open Banking product data available under Australia’s Consumer Data Right (CDR) to support comparisons across 100+ lenders.

The CDR framework makes standardised product information publicly available, including rates, fees, features and eligibility criteria. This information differs from the private account information customers choose to share when connecting their accounts.

Bheja brings that product information into an accessible starting point for borrowers who want to understand where their loan stands.

Bheja’s free Home Loan Health Check uses the loan details you provide to check against more than 6,500 live rates and show potential savings. It involves no credit enquiry or obligation to switch.

You can start without booking a broker call or deciding to refinance.

If you choose to explore switching, Bheja’s broker will assess your eligibility and compare fees, features and switching costs to help you understand whether an option suits your needs.

The platform also suggests ways you could save interest or repay your loan sooner, such as rounding up repayments or paying fortnightly. The benefit depends on the amounts you pay and how the repayment arrangement works.

A Health Check shows where you stand at the time of the comparison. Connecting your loan allows Bheja to keep monitoring for lower rates. When a lower rate becomes available, Bheja sends you an alert. You can then decide whether to explore it.

The monitoring focuses on rates. An alert does not automatically mean another loan offers better overall value. Bheja’s broker can help you assess the opportunity, including the features you need, relevant fees and the cost of switching. You remain in control of whether to proceed.

Checking your rate online does not mean you have to make a major financial decision through AI alone.

Behind Bheja’s platform is a human mortgage broker. You can arrange an obligation-free consultation to ask questions, discuss personalised options or work through more complicated circumstances.

If you decide to switch, the platform prefills around 80% of your application information using information available through your connected accounts under the CDR. This can include income and existing debts, reducing repeated data entry.

You review and confirm the information before proceeding. The lender assesses your application and makes the approval decision.

Bheja’s technology simplifies the checking, monitoring and application process, while a human broker supports the decisions that need a conversation.

Start with a free Bheja Home Loan Health Check to see whether your rate remains competitive and a lower-rate option is worth exploring.