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Brokers slam mortgage bidding site

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Julia Corderoy | 18 Sep 2014, 08:06 AM Agree 0
A new mortgage website which allows brokers to 'bid' for business isn't gaining support from the broker community.
  • Kate | 19 Sep 2014, 08:45 AM Agree 0
    I just don't understand why you would pay $400 to have people 'bid' for your mortgage when you could go to a mortgage broker for free. Big businesses like Aussie and Mortgage Choice got to where they are because they offer a free service and professional advice.
    and my understanding of the situation is that Mortgage Choice doesn't even pay different commissions from different lenders anyway!
    I also find it suspicious that their website doesn't have the logo's of the banks that they offer loans from. It appears to be under the guise of 'nothing flashy' but i wonder if it's because they don't have permissions to use them.
    It could be that the big banks they've signed on are actually just individual branches who can't speak on behalf of the larger business. Just seems that if this is the case, it's a little misleading....
  • AAB | 26 May 2016, 06:17 PM Agree 0
    No broker is 'free' - that's the very point. Most people using an ordinary broker would have no idea how many thousands of dollars the broker receives in commission from the lender - typically $4,000 up front and then about 0.15% of the loan each month for the life of the loan. for this same reason the average broker is biased towards lenders that offer them an attractive commission. I'd rather pay a one-off flat fee and know I've got the best deal for me and not the broker. I'm not advocating Flongle either, I've never used them, but that's probably why they don't include any back logos on the site. I think I saw somewhere on the site a list of banks and credit unions available.
    • Eric Handbury | 29 Jun 2016, 11:48 AM Agree 0
      No lender gives out 0.15% per month trail.
    • Werribee | 12 Aug 2016, 08:28 PM Agree 0
      Average upfront commission is $2,000 or even less....
  • Mike | 31 May 2016, 12:09 AM Agree 0
    The average commission is $4,000? What do you think a broker would get for seeing an elderly client of an evening to help with a loan discharge? Or what about the client that needs a bridging loan with no end debt? Or countless other examples I can think of where I spend my own time of an evening away from my family just so I can help people who frankly have no other way of getting assistance? I ultimately don't earn a cent from those acts - but I do them anyway.

    Yes I do receive commissions from normal residential loans, but the upfront commissions are rarely $4,000. I have worked 60 hours a week for more than 12 years in my business and can assure you that I (along with my family) have paid a price for this. But I love the job that I do and the industry I'm in. I just wish those who make comments referring to brokers as biased and only chasing commissions would actually speak to someone like myself before making such inaccurate and misleading statements.
  • lol | 04 Aug 2016, 11:57 AM Agree 0
    AAB has no idea, the type of client who would ask you to come to there home at 8 at night but first to complain about commissions
    i've been both a banker and a broker, brokers work 10 times harder than bankers and funny enough banks only started becoming competitive with your homeloan rate when the broker market increased ... banks weren't handing out that yearly .15% to clients they were keeping it for themselves

    people in general are odd.. brokers are essentially a free service as the banks will offer the same product and the same rates whether you go into a branch or go through a broker. if you have a problem with a broker making cuts on helping you out and running around for you maybe you should just stick to the branch and ask for an additional.15% discount or rebate?... most brokers will wish you the best of luck and go help grateful people who deserve and appreciate the help
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