30 Jan The ill-informed anti-broker campaign
If you keep up with the financial news, you have not missed the fact that brokers have been in sight of an ‘ill-informed’ and controversial CHOICE campaign launched against them. The campaign aims to think mortgage brokers should not be remunerated by lenders as this could biased their judgements and work against their clients. Our responses to this foolish and irrelevant statement are simple:
* Commissions paid by lenders are considered to be similar as they have a negligible difference from lender to lender.
* Asking the clients to pay up-front fees for broking services will only have the consequence to drive people to banks.
Banks? Haven’t they been mentioned to be driven by ‘greed – the pursuit of short term profit at the expense of basic standards of honesty’ as per the interim findings of the royal commission and recently pointed out by Mr Peter White, managing director of the Finance Brokers Association of Australia?
In a recent article, the FBAA stated the Australian Competition and Consumer Commission concluded that ‘banks use their lack of transparency to stifle competition and make extra profit from customers’.
Mortgage brokers only want to have happy customers and positive outcomes, otherwise they loose business! They are transparent about their commission and the way they get paid, and are driven to achieve the best product for a client. Informed people understand the importance of mortgage brokers in the financial services industry. Benefits from using a mortgage broker are huge and numerous (you can have a look at our previous article here) and it is a considerable advantage to bring competition between small lenders and big banks.
If you want to support your mortgage broker and protect healthy competition in our home loan market, you can still pledge your support now and have your voice heard. The #choicematters campaign has already reached 3453 pledges!