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Brokers ditching Australia's biggest home loan lender

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Julia Corderoy | 13 Aug 2015, 08:26 AM Agree 0
One major bank may be Australia’s largest home loan lender, but it isn’t the broker market’s major bank of choice
  • jim | 13 Aug 2015, 08:45 AM Agree 0
    Why would you deal with them with their onerous documentary requirements plus the ranpant branch poaching with no comeback or support by CBA managment
  • Dean | 13 Aug 2015, 08:48 AM Agree 0
    I'm astonished at the Brokers that place their deals through CBA. How can a Broker who supposedly cares for their clients place their deals through a lender who's rates have never been the best in the market..I've had a magnificent 10 years in Broking and not one deal through them - don't support them!
  • John | 13 Aug 2015, 08:49 AM Agree 0
    So true. CBA don't care about channel conflict, their service not up to par and their products are behind others? So, yes, they are not the choice of most brokers
  • barry | 13 Aug 2015, 09:05 AM Agree 0
    Off the subject of CBA,I am always at a loss to understand why a broker would say that the cheapest rate is the best deal!!!
  • Neil | 13 Aug 2015, 09:12 AM Agree 0
    I could never understand how CBA gathered so much business from brokers. They have been my "lender of last resort" for many years. Raise poaching with your BDM, and they just wave if off. Sorry CBA, you lost me years ago. And the arrogance is that not one BDM has called me to ask why.
  • Tony | 13 Aug 2015, 09:18 AM Agree 0
    CBA have treated two $1.5 mil plus clients of mine like trash. BDM has absolutely no influence and honestly doesn't care.....his comment "Well what do you expect me to do". I am currently churning my CBA book with PASSION!!
  • Daniel | 13 Aug 2015, 09:19 AM Agree 0
    Lender of last resort for home loans. Poor service, channel conflict, very ordinary products. Asset finance arm is great though.
  • Steve McClure | 13 Aug 2015, 09:45 AM Agree 0
    Put any lender's name up, people will bag it. The fact remains CBA are dominant. However this should be a sign to them that they need to better appease the market. One strategy might be to approach the investment loan dilemma in a more constructive manner. Increasing rates on existing loans without any beneficial offset to those loyal customers is unconscionable - and may increase loss of market share.
  • Phil in Finance | 13 Aug 2015, 10:06 AM Agree 0
    I certainly hope the brokers who still use the CBA are correctly advising clients of their "conflict of interest" as they are mandated to give the bank a minimum number of loans every six months or lose accreditation.
    This must be disclosed in the Preliminary Assessment form (of course).

    When I explain this potential conflict to my clients they fully understand my reluctance to consider using them.
  • grahame | 13 Aug 2015, 11:32 AM Agree 0
    At least they are getting their own back. This is the worst bank is Australia. If they did not have such coverage due to the fact they were once the central bank and Government agency's bank with them it would have happened earlier.
    Mortgage brokers spend a lot of time and they have wasted mine and cost me money. I am still angry for them causing a capital gain when we they would only allow a 50/50 split with my son. They have lost my business.
  • Harold Spencer | 13 Aug 2015, 11:38 AM Agree 0
    Agree with all the comments but we should all remember that CBA has publicly stated that it's preferred model is via it's direct business channels and the only broker in that space is Aussie. If you are outside Aussie and give CBA business you are assisting a lender that will not assist you so please don't complain at least they are open about their policy.
  • Brissy Broker | 13 Aug 2015, 11:58 AM Agree 0
    Neil and many others are spot on. I know many brokers who hate CBA, but I also know a few who love them, but many of these were once CBA staff which may, in part, explain their dominance. The CBA will often write the deals that no-one else will.
  • DD | 13 Aug 2015, 11:58 AM Agree 0
    The only bank I've ever used that complicates the uncomplicated!

    They're a complete waste of time. Terrible service and an overkill of requirements. Recently have an approved borrower working and residing in Singapore .(Aus citizen) They refused to send mortgage docs overseas despite approving the very strong transaction. 3 weeks of ridiculous mental discussions and eventually we walked away.
  • Steve McClure | 13 Aug 2015, 06:36 PM Agree 0
    Put any lender's name up, people will bag it. The fact remains CBA are dominant. However this should be a sign to them that they need to better appease the market. One strategy might be to approach the investment loan dilemma in a more constructive manner. Increasing rates on existing loans without any beneficial offset to those loyal customers is unconscionable - and may increase loss of market share.
  • SEQ Broker | 14 Aug 2015, 08:54 AM Agree 0
    While I agree with some of the above, CBA do offer some niches. The Commbroker website is very good. You can talk to an assessor, they even provide their number on commbroker. You can do land only in cat 3 and 4 postcodes and up till recently 95% + CAP LMI purchases in those postcodes where other lenders simply say its too risky. So while there is some to bag with the CBA, there are scenario's that they come out on top - and they are pretty open about where they do not intend to be the front runner. I definitely agree that it is unconscionable to raise interest rates on investors who already have a loan with CBA. if they had have known that, would they have placed their business there in the first place - they have no right of reply.
  • Rebecca | 14 Aug 2015, 12:02 PM Agree 0
    I agree with a majority of these comments. I have suffered at the hands channel conflict.I have also just recently lost a client to them only because the customer went into to obtain a statement showing funds to complete & the CBA branch staff member wrote the loan there & then. The customer's comeback was just well wanted to go with a bank. After advising them that the bank offer was worse than what I was offering them with a nonbank lender they just went "oh well" I get going to a bank but that bank... Nope..
  • Andrew | 14 Aug 2015, 12:58 PM Agree 0
    Four million plus refinance deal - they have requested witnessing documents be re-done four times and they have now lost the most recent copies..... incompetent is the only word that comes to mind.
  • Michael Kent | 17 Aug 2015, 05:14 PM Agree 0
    I have been in home loans for 12 yrs. I worked at the CBA for two.

    18mths ago I went to get my CBA accreditation and they declined me and gave absolutely no reason why.

    I wasn't fired from the CBA I left on my accord and was writing big numbers. This was why I left CBA as they found pathetic reasons not to pay my bonuses.

    I also cannot get Bankwest accreditation and again with no reason given. I can only imagine it's sour grapes.

    I can say however I have not had one occasion where I have needed to use them.

    There is plenty of lenders out there. Most of my business is refinancing very unhappy clients OUT of CBA to a cheaper 2nd tier lender.
  • Harold Spencer | 18 Aug 2015, 11:07 AM Agree 0
    Mr Kent the reason maybe because you are churning your old CBA clients. Just a thought.
  • Michael Kent | 18 Aug 2015, 12:50 PM Agree 0
    Dear Harold

    They declined me BEFORE I started submitting loans to other lenders so no that is not the reason.

    I have stayed in touch with fellow mobile lenders from CBA who have left and also were not accredited. It is a classic example of CBA arrogance.
  • Darren | 18 Aug 2015, 10:06 PM Agree 0
    If you are interested in your client then cba is the only place to consider. If you want write dodgy deals go elsewhere, also how many brokers here pinch clients when they are already dealing with a branch
  • SunnyCoastBroker | 19 Aug 2015, 09:04 AM Agree 0
    "If you are interested in your client then cba is the only place to consider." Darren you are deluded. Are you honestly stating that CBA provides the best in customer service? Methinks you are a CBA puppet. If you don't already work for them, then perhaps you should apply...
  • Rebecca | 20 Aug 2015, 06:28 AM Agree 0
    Hi Darren, I am curious what makes you think that unless you are not dealing with CBA then you are a dodgy broker.
    What other lender or bank puts a limit on some deals that you have to lodge & settle to ensure that you meet your accreditation commitments. And if for some reason you don't then charge to get your accreditation back. If a client comes to me requesting a CBA loan then by all means, I will package a CBA loan for them if of course it is the most suitable product for them. I can honestly say that in my 20 + years of brokering I have not once "pinched" a bank client. Any bank that is.
    So just out of curiosity Darren what branch of the CBA are you a manager of?
  • Harold Spencer | 20 Aug 2015, 12:28 PM Agree 0
    So just out of curiosity Darren what branch of the CBA are you a manager of? He's not a manager at best "a concierge."
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