Best Interests Duty
nounbest in·ter·ests du·typronounced BEST IN-trəsts DYOO-tee
Last reviewed 16 April 2026
What does the noun Best Interests Duty mean?
A legal obligation under sections 158LA and 158LE of the National Consumer Credit Protection Act requiring mortgage brokers to act in the best interests of borrowers when providing credit assistance. This includes gathering sufficient information, recommending suitable products, and prioritising the borrower's interests over the broker's when a conflict exists. It took effect on 1 January 2021.
How the noun Best Interests Duty is used
Under the best interests duty, your broker must recommend the loan that suits you best — not the one that pays them the highest commission.
Related words
Cite this entry
MLA citation: "Best Interests Duty." How to Property, 16 Apr. 2026, https://howtoproperty.com.au/definitions/best-interests-duty. Accessed 29 May 2026.
Chicago citation: How to Property. "Best Interests Duty." Last modified April 16, 2026. https://howtoproperty.com.au/definitions/best-interests-duty.
APA citation: How to Property. (2026, April 16). Best Interests Duty. https://howtoproperty.com.au/definitions/best-interests-duty