ANZ cut commissions for riskier borrower’s

Very interesting to see ANZ has decided to cut Brokers commissions if their clients are borrowing over 80%.

Sign of things to come?

Sorry if this has already been posted.
ANZ cuts commission payments to mortgage brokers with 'riskier' clients

 

This was mentioned previously and some lenders have for sometime segmented commissions based on LVR. (ie Liberty's commission is 10 basis points lower for over 90% LVR deals)

The ANZ drop is absolutely tiny and IMHO meant to be more of a gesture of the intent of the business doing right thing to make sure it's introducers aren't being incentivised against the clients interests, than a real drop.

In reality higher LVR deals are significantly more work for brokers and those people purported to being unethical with their advice wouldn't really be profiting that much more/at all when you look at the overall picture.

We'll see what happens with the overall trend in the industry over time - that's where things get more interesting.

 

I haven't seen anything of this. Not from ANZ and not from my aggregator. A bit strange, but it's also the holidays and I may have missed it (perhaps that's deliberate on the ANZs part).

Realistically, it's not a big deal. There's actually a number of lenders that pay less, it won't have any bearing on the recommendations of most brokers. The only concern I have is when one lender makes a move, others tend to follow and there's some that will be nasty about it.

Corey does raise a very good point. A 90% loan tends to be a lot more work than an 80% loan. No sane broker would go out of their way to recommend borrowing more than 80% if there isn't a good argument for it. They should be paying more for high LVR loans, not less.

 

My train of thought too - the change is too minor to actually incentivise any change.

 

I'm surprised this even made it into the news......must have been a slow day.

Cheers

Jamie