How much brokerage???

Discussion in 'Loans & Mortgage Brokers' started by qak, 19th Nov, 2018.

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  1. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    100% of my clients could have gone to the bank directly and gotten a loan.

    I like to think I can provide a better outcome than the bank though.
     
    Lindsay_W and Jess Peletier like this.
  2. Phantom

    Phantom Well-Known Member

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    I agree with Redom. I believe it was a strategic move by CBA. The other majors I imagine were looking around the room waiting to see who would draw first blood to get the notion flowing. Just like they do with rate & policy changes.

    Of course, it had to be CBA being the top dog (no pun intended). This is not the first time they have thrown brokers to the wolves & certainly won't be the last. The CBA has made it's intentions clear with regards to the broker channel from a while back.

    Once the momentum builds, it is very possible that the majors could make it reality & decide that this is the perfect opportunity to weaken the broker channel with the catalyst being a major remuneration overhaul which is certainly within their abilities collectively. Especially by using the RC as the excuse for the change..... the perfect smokescreen?
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    I agree - I think the broker market will shrink massively. But I don't think the big guys will take on the specialist lending - they simply won't have to. I intend to stick around one way or another, so it's a matter of making it work.

    I agree many 'could' have gone direct to branch, and if fee's become payable some certainly will. But there are others who are willing to pay for advice, and as it happens I'm lucky to be a broker who has actual advice to give, outside the obvious rate comparison. The broker market will shrink massively but this gives more scope for innovative brokers to morph into something different, that simply isn't easily done right now. Charging a fee right now is difficult because so many provide the service at no cost to the borrower. When that option is removed, we get to change things up a bit and those that DO need specialist advice and can't easily go it alone will pay for a service they value. The smaller pool of brokers will mean there's plenty of work for those that stick around.
     
    albanga likes this.

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