Mortgage Broker Agreement Template for Australia

The Mortgage Broker Agreement is essential for formalizing the relationship between licensed mortgage brokers and their clients in Australia. This document is required when a mortgage broker or broking company provides credit assistance services related to residential or commercial mortgages. It must comply with the National Consumer Credit Protection Act 2009 and associated regulations, including mandatory disclosure requirements and responsible lending obligations. The agreement covers crucial aspects such as service scope, fee structures, privacy provisions, and broker obligations. It's designed to protect both parties while ensuring transparency and regulatory compliance in the Australian mortgage broking industry. The document is particularly important given the significant role of mortgage brokers in Australia's lending landscape and the strict regulatory framework governing their activities.

1. Parties: Identification of the mortgage broker and the client, including full legal names, ABN/ACN for the broker, and contact details

2. Background: Context of the agreement, including broker's licensing status, general nature of services to be provided, and acknowledgment of regulatory framework

3. Definitions: Key terms used throughout the agreement, including regulatory terminology and industry-specific terms

4. Scope of Services: Detailed description of mortgage broking services to be provided, including loan research, application assistance, and liaison with lenders

5. Broker's Obligations: Key responsibilities including due diligence, disclosure requirements, and compliance with relevant laws and regulations

6. Client's Obligations: Requirements for providing accurate information, documentation, and cooperation in the loan application process

7. Fees and Charges: Clear structure of broker's compensation, including commission arrangements and any direct fees charged to the client

8. Disclosures and Acknowledgments: Mandatory disclosures under NCCP Act and other regulations, including commission arrangements and relationships with lenders

9. Privacy and Confidentiality: Handling of personal and financial information, consent for credit checks, and information sharing with third parties

10. Term and Termination: Duration of the agreement and circumstances under which either party may terminate the relationship

11. Liability and Indemnity: Limitations of broker's liability and client indemnities, consistent with regulatory requirements

12. Dispute Resolution: Process for handling complaints and disputes, including reference to external dispute resolution schemes

13. General Provisions: Standard contract terms including governing law, amendments, notices, and entire agreement clause