Have your say - Anonymous Industry Survey on your view and use of Mortgage Brokers

Discussion in 'Loans & Mortgage Brokers' started by Rolf Latham, 12th Dec, 2018.

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  1. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    As many of you would know, the Industry I work in, where we have helped thousands of hard working families achieve their hopes, dreams and aspirations, looks to be under attack from the Cartel of the Large banks.

    The larger banks would generally like mortgage brokers to GO AWAY, OR distribute their products for free, OR on a user pays principle. We hold too much market power, and they dont like that [​IMG]

    If we go back to the days before NON banks, and brokers, the margins lenders were making on home loans was significantly higher than today...................... effective competition limits such market power.

    In my view, Concepts and proposals for flat fee remuneration, and most user pays concepts will stifle competition, and produce worse consumer outcomes, either in poorer levels of service, lower levels of advice, increased REAL cost, or all 3.

    While our industry is NOT perfect, since we are all human, allowing lenders and well intentioned, but poorly advised consumer advocacy groups to drive media driven, legislative outcomes wont make for good consumer outcomes.

    I would please ask you to complete the survey linked below, so that the consumers voice is heard, over and above the commercial noise.

    This will take 2 minutes of your valuable time.

    The Survey has been endorsed by the MFAA

    The survey is anonymous and responses will only be viewed in aggregate. Further, none of your personal details will be used by any third parties whatsoever.

    This survey is for ALL borrowers that have ever used a broker - not just clients of ours, or of brokers that post here.

    You can participate by following this link:



    https://www.research.net/r/BorrowerExperienceSurvey.




    Happy to discuss here, via PM or email - [email protected]

    ta
    rolf
     
    Rolf Latham, 12th Dec, 2018
    #1
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  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    Thanks for posting this - I completed the survey.
     
    Simon Hampel, 12th Dec, 2018
    #2
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  3. willair

    willair Well-Known Member Premium Member

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    That took less then a minute..
     
    willair, 12th Dec, 2018
    #3
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  4. hieund85

    hieund85 Well-Known Member

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    Done! Will be really sad if the banks win this battle against brokers.
     
    hieund85, 12th Dec, 2018
    #4
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  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    ASIC conducted a review of the industry and recognised the clear consumer benefits of brokers. As well as some elements of the market that produce some mixed outcomes. There may be reasons to restructure some elements of the industry but a model where the payment is paid by the lender (as a outsourced service) remains most practical.

    Brokers also act as a means of consumer comparision for a range of complex issues affecting borrowers that a single lender cannot reasonably compare without concerns for misleading conduct. Consumers appear to be disadvantaged by NOT using a broker. If we were discussing pharmacy prescriptions its like suggesting the Doctor can choose who fills the prescription. Consumers would be ripped off.

    I would think that the consumer benefits of mortgage brokers would be reason for a model that retains brokers who are often independent of lenders. The banks have demonstrated endlessly their contempt for any customer in their chase for profit.

    A model where banks cannot employ brokers, or give credit advice to customers OR own any firm that acts as a broker (OR financial planner) excepting non-consumer loans eg commercial credit seems more appropriate given their terrible compliance admissions to the Royal Commission. Brokers are a consumer service not a lender service. If regulations forced all borrowers to licensed retail services that are all independent of every lender and are all paid a consistent fee I would think all consumers will be better off.

    Why not also allow brokers to facilitate credit cards ? There needs to be competition.
     
    Paul@PAS, 12th Dec, 2018
    #5
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  6. Propertunity

    Propertunity Well-Known Member

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    Done.
     
    Propertunity, 12th Dec, 2018
    #6
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  7. Leeroy93

    Leeroy93 Well-Known Member

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    Done. We have had a fantastic experience with our broker. Suitable loan selection for long term strategic goals. Your best asset to navigate an increasingly complex and time consuming process for loan applications. Highlighting poor behaviour and conflicts of interest will hopefully improve the system without removing incentives to ensure a high standard of service.
     
    Leeroy93, 12th Dec, 2018
    #7
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  8. Ben_j

    Ben_j Well-Known Member

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    Done
     
    Ben_j, 13th Dec, 2018
    #8
  9. Simon Hampel

    Simon Hampel Founder Staff Member

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    Well said Paul - I think this is an important part of the discussion which is not well understood by many people. We absolutely need a level of independence between the lenders and the borrowers.

    When it comes to managing a portfolio of loans - I would never trust the advice of a bank on structuring my finances which is likely to require finance from multiple lenders at some point. An independent mortgage broker can recommend products from a range of lenders to suit the various stages of my investing journey, which is something a bank simply cannot do.

    You will never have a broker working for the CBA recommending that you go talk to NAB or a non-bank lender to source your finance because it suits your needs better than what they can offer!
     
    Simon Hampel, 13th Dec, 2018
    #9
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  10. Eric Wu

    Eric Wu Well-Known Member

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    shared the post and link in my social media group, having good responses, and other ppl started sharing it as well.

    thanks for the work @Rolf Latham

    we can spread the words far and wide.
     
    Eric Wu, 13th Dec, 2018
    #10