Are Brokers Regulated in Victoria, Australia and What Licence Should They Hold?
By Lowest Interest Rates Australia
Introduction
When I bought my first home, I remember being overwhelmed by all the paperwork, acronyms, and fine print. My mortgage broker seemed like a lifesaver — but a small part of me wondered, “How do I know this person is legit?” After all, they were helping me make one of the biggest financial decisions of my life. Surely there must be some rules in place, right?
Well, there are — and they’re pretty strict. In Victoria (and across Australia), mortgage brokers are highly regulated professionals who must hold specific licences, follow national consumer laws, and adhere to ethical standards that protect borrowers like you and me.
In this article, I’ll break down exactly how brokers are regulated, which licences they must hold, and why this system gives you confidence that your home loan journey is in safe, qualified hands.
Table of Contents
- Overview: Who Regulates Mortgage Brokers in Victoria?
- What Licence Should Mortgage Brokers Hold?
- The Role of ASIC (Australian Securities and Investments Commission)
- Other Key Oversight Bodies: ACCC and AFCA
- Broker Accreditation and Membership Requirements
- Minimum Education and Training Standards
- How Compliance Protects You as a Borrower
- How to Check if Your Broker Is Licensed and Legitimate
- Case Study: A Victorian Homebuyer Who Verified Their Broker
- Final Thoughts – Work with Licensed Brokers at Lowest Interest Rates
Overview: Who Regulates Mortgage Brokers in Victoria?
In Australia, all mortgage brokers are regulated at a national level by the Australian Securities and Investments Commission (ASIC). This means that whether your broker is based in Melbourne, Geelong, or Ballarat, they must comply with federal financial services laws under the National Consumer Credit Protection Act 2009 (NCCP Act).
The NCCP Act was introduced to make sure brokers operate ethically and responsibly when recommending loans to clients. It covers areas like:
- Ensuring loans are “not unsuitable” for borrowers
- Full disclosure of fees, commissions, and relationships
- Fair treatment and transparency during the loan process
- Proper handling of client data and documents
In addition, brokers in Victoria must also comply with Australian Credit Licence (ACL) regulations — either by holding their own licence or operating under another licence holder’s authorisation.
This strict framework ensures brokers are held accountable — not just to you, but to the law.
What Licence Should Mortgage Brokers Hold?
To legally provide credit assistance in Victoria, a mortgage broker must hold one of the following:
1. Australian Credit Licence (ACL)
This licence, issued by ASIC, authorises the holder to engage in credit activities such as suggesting or assisting with home loans. Brokers who operate independently must hold their own ACL.
2. Credit Representative Status
Many brokers don’t hold their own licence but instead operate as a credit representative under another company that holds an ACL — typically a larger mortgage aggregation group. These brokers are still regulated under the same laws but are supervised by their licence holder.
In both cases, the broker must meet ASIC’s strict “fit and proper person” test, meaning they have no disqualifying criminal or financial history and have completed required training.
Tip:
You can check whether your broker or their company is licensed by searching ASIC’s Credit Licence Register.
The Role of ASIC (Australian Securities and Investments Commission)
ASIC is the main regulator overseeing mortgage brokers in Australia. Its job is to ensure brokers act in the best interests of their clients and follow the Best Interests Duty (BID) introduced in 2021.
The Best Interests Duty legally requires brokers to:
- Prioritise the client’s interests above their own or the lender’s
- Recommend loans that are appropriate and sustainable
- Disclose commissions, fees, and any potential conflicts of interest
- Provide clear and factual explanations about loan products
ASIC regularly audits brokers and can issue fines, suspend licences, or ban individuals who breach regulations. This level of oversight ensures that brokers maintain professionalism and integrity in every transaction.
Other Key Oversight Bodies: ACCC and AFCA
While ASIC is the primary regulator, other organisations also play a role in protecting borrowers in Victoria:
1. ACCC (Australian Competition and Consumer Commission)
The ACCC enforces laws around fair trading and consumer protection. If a broker or lender engages in misleading conduct or unfair practices, the ACCC can take legal action.
2. AFCA (Australian Financial Complaints Authority)
All brokers must be members of AFCA, which provides free, independent dispute resolution for consumers. If you ever have a problem with a broker — such as misleading advice or poor service — AFCA can step in and help resolve it without you needing to go to court.
So, if your broker is AFCA-accredited, it means you have a safety net if things go wrong.
Broker Accreditation and Membership Requirements
Beyond licensing, most professional brokers in Victoria also hold accreditations with key industry associations. These memberships demonstrate ongoing commitment to ethical standards and continuing education.
Common accreditations include:
- 🏦 Mortgage & Finance Association of Australia (MFAA)
- 💼 Finance Brokers Association of Australia (FBAA)
Both organisations set professional benchmarks for conduct and require brokers to complete annual training, adhere to codes of ethics, and maintain professional indemnity insurance.
Many lenders also require brokers to be accredited with these associations before allowing them to submit loan applications — meaning only qualified, trusted professionals can represent their products.
Minimum Education and Training Standards
Under Australian law, mortgage brokers must meet specific education and competency requirements. These standards ensure that every broker has the technical knowledge and ethical awareness to give sound advice.
Minimum qualifications include:
- Certificate IV in Finance and Mortgage Broking (FNS40821) – the entry-level qualification for anyone starting in the industry.
- Diploma of Finance and Mortgage Broking Management (FNS50322) – required for those who want to hold an ACL or manage a team.
- Ongoing Continuing Professional Development (CPD): Brokers must complete annual training to stay up-to-date with legislation, lender policies, and market changes.
In addition, brokers are required to maintain a clear criminal record and undergo background checks before becoming accredited with any lender or aggregator.
How Compliance Protects You as a Borrower
The regulatory system around brokers isn’t just bureaucracy — it’s designed to protect you. Here’s how compliance works in your favour:
- ✅ Transparency: Brokers must disclose all fees and commissions before you sign anything.
- ✅ Fairness: The Best Interests Duty ensures recommendations are made with your financial wellbeing as the top priority.
- ✅ Accountability: Brokers are answerable to ASIC, AFCA, and professional bodies — meaning unethical behaviour can lead to penalties or loss of licence.
- ✅ Consumer Protection: You have access to free dispute resolution and legal recourse if something goes wrong.
In short, the system is built to give borrowers peace of mind. When you work with a licensed broker, you’re dealing with a professional who’s not only qualified but legally bound to put you first.
How to Check if Your Broker Is Licensed and Legitimate
It’s easier than ever to confirm if your mortgage broker is properly licensed in Victoria. Here’s how to do a quick background check:
1. Check the ASIC Register
Visit ASIC Connect and search your broker’s name or company. You’ll be able to see if they hold an Australian Credit Licence or operate as a representative.
2. Look for MFAA or FBAA Membership
Reputable brokers will proudly display these logos on their website or email signature. You can cross-check their membership through the association websites.
3. Verify AFCA Membership
Every licensed broker must be part of the Australian Financial Complaints Authority (AFCA). You can check this by asking for their AFCA membership number or visiting afca.org.au.
4. Ask for Credentials
A trustworthy broker will never hesitate to provide proof of qualifications, certificates, and licensing details. If they’re evasive — that’s a red flag.
Case Study: A Victorian Homebuyer Who Verified Their Broker
Emma, a first-time buyer in Melbourne, was excited to find a broker promising her an amazing rate. But something felt off — the broker worked from home and didn’t list a company name online. Before signing anything, Emma decided to check ASIC’s database.
Sure enough, the individual wasn’t licensed — and their “company” didn’t appear on the register. Emma instead reached out to Lowest Interest Rates, where all brokers were properly licensed under ASIC and members of both the MFAA and AFCA. Within weeks, Emma secured a legitimate loan at a great rate — and with total peace of mind.
The lesson? Always verify your broker. It takes five minutes and could save you thousands — and a lot of stress.
Final Thoughts – Work with Licensed Brokers at Lowest Interest Rates
Mortgage brokers in Victoria are among the most tightly regulated professionals in Australia’s finance sector — and for good reason. When you’re borrowing hundreds of thousands of dollars, you deserve to know that your broker is licensed, ethical, and working solely in your best interests.
At Lowest Interest Rates, every broker on our team is fully licensed, accredited, and compliant with ASIC, AFCA, and MFAA standards. We’re proud to uphold the highest ethical and professional benchmarks while helping Victorians find the best possible loan for their goals.
🏡 Ready to work with a licensed, trustworthy broker? Visit LowestInterestRates.com.au today to connect with an experienced professional who’ll guide you through the process safely, transparently, and with your best interests at heart.
