Use this guide to explore practical video scenarios that show how to apply best interests duty (BID) in real client situations. Each scenario demonstrates how to assess needs, compare products, and recommend solutions that align with the client’s best interests.
What is best interests duty?
Best interests duty applies to all mortgage brokers and credit representatives. It requires you to act in the client’s best interests when providing credit assistance and to prioritise the client’s interests in the event of a conflict.
These short practical scenarios illustrate how to integrate BID into everyday client interactions.
Scenario 1: Variable interest rates
Watch how to meet BID obligations when assisting a client seeking a competitively priced variable-rate loan.
Scenario 2: Fixed interest rate
See how to assess and recommend a competitively priced fixed-rate loan that aligns with the client’s objectives.
Scenario 3: Product features
This example shows how to apply BID when a client requires features such as offset, redraw, or the ability to make additional repayments.
Scenario 4: Repayment types
Explore how to demonstrate BID when a client requests a mix of principal and interest (P&I) and interest-only repayments.
Scenario 5: Limited deposit
Watch how to meet BID when a client requires lending above 80% of the property value due to limited savings.
Scenario 6: Refinance
Learn how to assess the competitiveness of a client’s existing home loan and apply BID in a refinance scenario.
Scenario 7: Professional package
See how to match a professional package (“pro pack”) to a client’s needs and demonstrate BID when assessing bundled product offerings.
Use our checklist to support your BID process and ensure your file demonstrates appropriate reasoning and evidence.
Need help?
If you need help applying best interests duty in client scenarios, contact your Compliance Support Manager or email [email protected].