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Broker commissions are 'secret' and belong in the hands of borrowers

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Australian Broker | 16 Jul 2013, 08:00 AM Agree 0
Mortgage broker commissions have been lumped together with those earned by insurance brokers, super and managed funds - and belong in clients' pockets, according to a Fairfax article
  • Casey | 16 Jul 2013, 08:44 AM Agree 0
    Sounds like a slow news week over at Fairfax. Or perhaps a wider question of who's getting actually getting kick backs? Does the Journo need to disclose any relationships with the website recommended?
  • Brado | 16 Jul 2013, 08:49 AM Agree 0
    mmmm.... interesting. I wonder what his motive is. I would really have liked to commented directly on that article... but there is no such space.
  • Mini Broker Pakenham vic | 16 Jul 2013, 09:04 AM Agree 0
    There should be a law against publishers who write misleading articles on subjects they have not properly researched or know nothing about. journalists at the Canberra times should understand before going to print, that a consumer can walk into a bank or any other lender, to get a like for like product, the same as they would from a mortgage broker for exactly the same price. the Bank either pays it's own staff and business running overheads for providing the service through it's branches or they pay the Broker for providing the service through a broker. It's the lender that pays the commission not the consumer. The value to the consumer for buying through a broker is that a broker provides a more thorough analysis on the like for like product and gives the consumer a clearer choice on what's available from a variety of lenders and what best suits the consumer
  • John Taylor | 16 Jul 2013, 09:14 AM Agree 0
    Hardly surprising that rubbish journalism is coming from a rubbish newspaper. Fairfax need to clean their act up and print the facts and not resort to gutter tabloid tactics.
  • Tony | 16 Jul 2013, 09:15 AM Agree 0
    Clearly another Journo who is totally unprofessional and no idea what they are doing
    The question is what are they allowed to get away with misrepensation and allowed to keep writing?
  • Sydney Broker | 16 Jul 2013, 09:22 AM Agree 0
    The journalist is an ignorant fool and I would have thought the MFAA could be a little more assertive than "the basic premise is false".
    Clearly the author has no clue on the subject and that commissions are disclosed in the Lenders Letter of Offer, payment is noted in the Credit Guide and specifically in the Credit Proposal. As well as a Credit Quote if you are charging a fee. So that's 3 distinct disclosures as well as the brokers verbal assertions. And surely clients must have some awareness as to why, in the most part, they are not getting billed? The aurthor is a fool and the MFAA should have pointed that out a little more clearly.
    Whats more - commissions should be in the hands of the customers? Come again? So the brokers business is free or we are all together redundant? The advice and support I have given my clients (not to mention the money saved through the advice) would beg to differ.
    Pay peanuts - get monkeys.
    MFAA needs to be a spine.
  • Warren | 16 Jul 2013, 09:33 AM Agree 0
    So if I go direct to the bank, can I get the wages the bank is going to pay its staff to process the loan too? OR maybe I could ask for the money it will pay it's CEO's. No wait that wouldn't be fair as they 'worked' for his money didn't they? So what do they think us brokers do again? I'm sure the minority think we do nothing? Otherwise why would they keep begrudging us also getting paid for the work we do?
  • NoTimeLikeTheFuture | 16 Jul 2013, 09:36 AM Agree 0
    When consumers read a publication - a journalist somewhere is being paid.

    I think newspapers should pay the readers that money for reading it. It belongs to them.

    The end
  • Keith B of the West | 16 Jul 2013, 09:43 AM Agree 0
    I have just read the full article written by David Potts. He is simpliy incorrect and misinformed with his assumptions/statements. As we know all commissions (even if we never receive them) are disclosed upfront under NCCP, but to make such irresponsible statements lacks any form of professionalism whatsover. MFAA now should be seeki an immediate retraction
  • ozboy | 16 Jul 2013, 09:55 AM Agree 0
    Why wait/expect the MFAA/FBAA/ASIC/ABA/ACCC to do anything at all, take ownership and lodge a complaint. Click this link:

    Let us know once you have complained and how it went.
  • Jeff | 16 Jul 2013, 10:19 AM Agree 0
    Casey and 'notimelikethefuture' have it spot on. And they roll this article out everytime they run out of stories. Clearly this journo must be the only one not tapping phones - but judging from the article, he doesn't seem bright enough.
  • Robyn Roberts | 16 Jul 2013, 10:25 AM Agree 0
    Please MFAA go into bat for us against such inaccurate publications. How many times do we have to be accused of non disclosure/secret commissions?
  • Coast Broker | 16 Jul 2013, 10:34 AM Agree 0
    I am surprised that David Potts would write an article like this. He sounds like he has lost the plot. Thought he knew better.
  • Steve McClure | 16 Jul 2013, 10:45 AM Agree 0
    For the article to be printed, it has to appeal to the masses. It's therefore interesting that many people are pre-occupied with what others might be earning, rather than using that service to their own advantage. So, we and our associations just have to use the lead this article gives us to promote our real point of difference. That's why any publicity is good publicity, ball's in our court.
  • Jack | 16 Jul 2013, 10:49 AM Agree 0
    Anything for a good story!
    Phone hacking has been exposed in the UK and it has ans is still happening in Australia!
    5% of journalists are good the rest are no better than the a #$!##!@!!....and as they say dont let the truth get in the way of a good story.
  • Regional broker | 16 Jul 2013, 11:08 AM Agree 0
    When will fair fax earn to employ journalists who know how to research, and have the ability to understand what the laws of the land and stop writing inaccuater non factual articles , best thing is for all finance brokers in Ciabberra is to write to the editor of the Canberra times explaining why thy are cancelling their subscriptions and advertising !
  • Matt | 16 Jul 2013, 11:28 AM Agree 0
    This is where we expect the MFAA to step in and speak out strongly on our behalf. Is this not why we are virtually forced to be a member of this industry body? Come on MFAA, I want my money's worth!
  • Patrick | 16 Jul 2013, 11:51 AM Agree 0
    Based on the idiotic logic revealed in the Canberra Times and since the lenders charge both direct and broker introduced customers the same interest rate and fees, then the salary (the relevant portion) of the Loans Officer at the branch also belongs to the consumer.
  • Gibbo | 16 Jul 2013, 11:54 AM Agree 0
    UnFairFax - Idiots!
  • Ticked Off | 16 Jul 2013, 11:58 AM Agree 0
    I would say that this idiot is engaging in some form of deceptive Conduct. Funny thing is reporters don't seem to be required to have the facts straight or from a reliable source to go to print. This is reckless at best. do your due diligence first.
    As for commissions we all earn them, some of you prefer to get it regularly on an hourly basis because they lack the balls to back themselves or their ability. This form of commission is called an hourly rate, you may also earn additional commission which would be refered to as a bonus.
    The difference is this income would be capped by that hourly rate but that is the price you would pay for the warm fuzzy feeling of a secure income. Don't bash others for wanting to be more or earn more than a set hourly rate because that prefer to take the risks associated with earning commission only income.
    commission income earners get paid for getting the job done.
    Wage earnes get paid regardless of their ability or effectiveness. What is truely sad is this idiot got paid for a service that was poorly researched and misleading.
  • Michael | 16 Jul 2013, 12:14 PM Agree 0
    Where and why was this piece of trash published. The industry all ready finds it tough to make ends meet with reducing commissions and with the intro of NCCP. Sure everyone has an opinion but when it's based on incorrect information, I am appalled by this. MFAA needs to do something very very fast, back us up and do what we pay you to do!!!!
  • Broker | 16 Jul 2013, 01:51 PM Agree 0
    More typical Fairfax garbage
  • Papery | 16 Jul 2013, 04:53 PM Agree 0
    Bring this 'Journo' & his tripe report to the attention of the ABC's Media Watch...they'd have a field day & you'd probably find this idiot is simply regurgitating someone else's poorly researched tripe!
  • Virendra Anand | 16 Jul 2013, 08:44 PM Agree 0
    The most Interesting aspect of the article is that, the Website also makes money by reccomending
    the products and services through their traffic.

    someone should verify the fact how they make money, if not through these recomendations.
  • QEDRisk | 16 Jul 2013, 09:47 PM Agree 0
    I'm actually surprise that the journo that wrote that still has a job. Most uneducated and poorly focussed piece of writing I have read in a while. Still, use enough sloganism and people will take notice. Works for Tony Abbott.
  • Stefani Yoanne | 17 Jul 2013, 03:50 PM Agree 0

    I wonder if the person who wrote this just wanna have an idea of how we consultants are earning or he's just bored about his job that he wants to shift careers.

    This aint a very nice article.
  • Casey Sorrell - Diversifi Perth | 17 Jul 2013, 06:06 PM Agree 0
    Well said 'Ticked Off'!
  • Broker Jim | 18 Jul 2013, 01:27 PM Agree 0
    Hmmm. Actually Broker commissions are not secret. They are disclosed in writing. Are Fairfax Journo's kickbacks secret? Or could the journo please tell us exactly how much he was paid behind closed doors to specifically promote a single market provider in his article!!!!!!!!
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