Advertising is a powerful tool for mortgage brokers, but it must be used carefully to avoid misleading or deceptive content. Ensuring compliance with advertising regulations helps protect your business and build customer trust.

Key Obligations

The primary obligation for brokers is to ensure that advertisements are not misleading or deceptive. This assessment depends on the overall impression the ad gives, considering factors such as the content, format, target audience, and media used. A balanced presentation that avoids exaggerating benefits is essential.

What to Include

To comply with regulations, brokers must include specific information in advertisements:

• Name, ACN, and ACL Number: If marketing material contains more than just basic contact information, include your company’s full name, Australian Company Number (ACN), and Australian Credit Licence (ACL) number. For example, "Great Mortgages Pty Ltd ACN 123 456 789 Australian Credit Licence 123456."
• Repayment Amounts and Rates: When advertising repayment figures, the annual percentage rate (e.g., “X% per annum”) must be included. If an ad contains a comparison rate, it should be identified clearly and accompanied by the required warning: "WARNING: This comparison rate is true only for the examples given and may not include all fees and charges."

Words to Avoid

Certain terms have strict usage restrictions under the National Consumer Credit Protection (NCCP) Act. Avoid using words like “independent,” “impartial,” or “unbiased” unless specific conditions are met. Similarly, phrases such as “free,” “best,” or “lowest” can be problematic unless they can be substantiated throughout the advertisement's life. It’s better to use terms like “competitive” cautiously, ensuring any claims can be verified against the market.

Disclaimers and Transparency

To prevent misleading impressions, all important disclaimers must be easily visible and not hidden in fine print. If an ad highlights potential benefits, the limitations or downsides should be presented with equal prominence. Transparency regarding fees, conditions, and product features helps ensure that customers have a realistic understanding of the offering.

Common Pitfalls to Avoid

1. Overstating Benefits: Avoid making promises that can’t be guaranteed, such as “will save you money.” Use more flexible terms like “may save you money.”
2. Inconsistent Messaging: Ensure consistency across all platforms, including websites, brochures, and emails. Discrepancies can lead to confusion or non-compliance.

Advertising and Best Interests Duty

When advertising, brokers should not promote a specific lender or product. The Best Interests Duty requires considering multiple options based on each customer’s circumstances. Therefore, ads should reflect a broad approach rather than endorsing a single choice.

Final Thoughts

Staying compliant with advertising regulations safeguards your reputation and fosters trust with customers. Always review your marketing materials to ensure accuracy, fairness, and transparency. For more detailed requirements, refer to our Help article on advertising compliance.