Would you be happy to Pay the Mortgage Broker

INTRODUCER

You have made your own assumption that the accountant is a broker.

 

I didn't think introducers got trail

 

Actually....I think this is a fantastic opportunity to expand services within Mortgage Brokering.

Blind Freddie could have told dem that these changes would eventually come...no point whinging like every industry times are changin'. You need to change, reflect, and reinvent...I think that good mortgage brokers who service clients well be still around. .....

 

Yeah, I agree, it will be the old tired ones and the johnny come lately get rich quick ones that will drop out. Time for a flush out anyway, every man and his dog seemed to jump in on broking.

I can see the lenders working out some other system, so it is technically a payment from borrower too broker....wink.

I have not gone direct to a lender from memory since the recession we had to have, I was so disappointed with some from the big 4, I went to a broker to get money specifically from anyone but them.

I prefer to deal with a broker who is usually across the products and policies unlike many bank staff.....I have always known what I can do & been able to execute as well, I think every single time, unlike direct from some larger banks who tell you yes, you can do something, to find out that no, your not even close....they have tried to talk me round many times to deal with them direct, I always decline....

Anyway, now, that is in doubt, so I agree, the RC has decreased competition if they introduce this, but at the same time, lending difficulties and the thought of trying to get them to do all the paperwork in an app with someone you do not know and knows nothing of you is as appealing as going to the dentist who uses no pain killer.

 

They don’t

 

They did get a fee however for every new mortgage. There was a figure of 0.4% quoted in the RC docs I think (nab?) though never revealed in the transaction.

 

They should have disclosed that fee to you.

 

But they didn't and when asked, the bank would not disclose. That's the point here.

 

Report them to asic

 

Your original post referred to your partners accountant getting trailing commissions. Had you stated that the accountant was a NAB referrer receiving a one off 0.4% spotters fee, we could have had less back n forth and the point would have been better understood, sooner.

 

Because you said they received trailing commission. fair assumption . Had you distinguished between spotters/referral fee and "trailing commission or equivalent" it would have helped avoid any misunderstanding

 

ROFL.... and ASIC would do what exactly? Enforce a disclosure action on the bank?

I think the Royal Commission made it quite clear that the regulators continually fail to enforce actions on the banks.....

 

They would ignore it no doubt!

 

I dunno, I enjoyed the attention of getting a guaranteed response ;p

 

**Breaking News**: Commissioner Hayne has released his findings from the RC into the price of milk at major supermarkets. “Cows are obviously the issue and can’t be trusted” concluded Hayne. “I agree with the big supermarkets that clearly the best client outcome is for customers to get up at 5am to milk the cows and bring the milk to the supermarkets themselves”.

He further criticised the current structure of supermarkets paying conflicted remuneration to greedy farmers which adds to the cost of milk. Hayne stated that “it is my expert opinion that farmers do nothing more than watch the cows eat grass and this is confirmed in the thorough and unbiased research provided by both Coles and Woolworths”.

Hayne further recommended that by concentrating on only milking 4 cows that competition would be guaranteed and that smaller supermarkets could easily survive and provide competition by focusing on the sale of almond milk.

Milk prices are predicted to rise July 2020 as a result of increased supermarket costs to offset the large bonuses paid to senior management following the removal of payments to farmers. “It’s a positive outcome for consumers and the Government should act on all recommendations immediately” said one supermarket CEO.

Woolworths and Coles shares closed 6% higher with nothing suspicious noted by many highly qualified media commentators. “I don’t drink milk but I sat next to someone in first class that visited an olive farm as a kid so I know what I’m talking about” said one Sydney newspaper economist who agreed with the RC findings.

 

This in the AFR

 

I guess the banks own mobile lenders and in branch loan teams work for free

 

I would happily pay for their advise a fixed hourly rate at par with Financial Planners and Accountants.

imo mortgage brokers will transform as pure “loan advisors” if proposed changes are implemented.

Currently brokers also play the role of a loan salesman ( bigger the sale bigger commission) which is not ideal.

 

My mortgage broker makes things easier and gives me part of his commission. So currently, I obviously prefer using him. If I was now supposed to pay him, I'm not sure what I'd do. I've negotiated with banks enough now to have some idea of what I'm doing.
As most people haven't bought 10IPs though, I don't think I'm the norm. Particularly early on it made things much easier having a good broker.