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​Commission hikes alone won’t win over brokers: Lender

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Australian Broker | 06 Feb 2014, 08:00 AM Agree 0
Following a recent spate of commission hikes a non-bank lender has claimed they will do little to sway brokers.
  • Dave Robinson | 06 Feb 2014, 09:11 AM Agree 0
    Spot on I tried Westpac for the first time in 7 years, what a mistake. Even with the increase in commission by the time I took out all the extra work I had to do following up Westpac to do their part I ended up further behind the 8 ball. Westpac are now back off my panel and no amount of commission or competitions will change that.
  • grahame hale | 06 Feb 2014, 09:25 AM Agree 0
    I could not agree more with this article. I wonder when the big four and the other banks that have a bad reputation for dealing with a loan application. Speed with an application is important and often the client just wants a loan. With the rates being similar across the banks then it comes down to a broker relationship.
    I had one bank ask me three times for information I had already sent in and it was three different people, on top of this you could not talk to anyone except the BDM who always answered his calls at 5pm when he was going home. Bad service and lack of support do not make a relationship.
  • Clawback | 06 Feb 2014, 09:27 AM Agree 0
    Time for clawbacks to go as well
  • Brian Broker | 06 Feb 2014, 09:27 AM Agree 0
    Very cynical marketing Pepper !! "Commission hikes will do little to sway brokers" - BUT - just in case it does sway brokers, have a look at the high commission we are paying. Yup, us brokers are just simple minded folk after all, and would probably fall for something that blatant.
  • John | 06 Feb 2014, 09:30 AM Agree 0
    Commission increase are only getting back to where they were 5 years ago, but you are right, it is not the be end, but it will help. Leave the upfront, but bring back the trail from day one, as some do now

    Brokers are spending more time on each file, which means we are receiving less for our efforts.

    Lenders must get their back office in order and not treat brokers with contempt. That means having an open dialog, call, not email.

    Every time a lender has a special, they get swamped, but they have not geared up the back end, hence brokers get frustrated and they receive poor service.

    All lenders must remember, the broker is the customer, no broker referrals, no business
  • BJ | 06 Feb 2014, 09:37 AM Agree 0
    What? Of course commissions will drive home loan salesman to place business with those who pay the higher rate.
    This is real world not some fanciful wanna be profession. Seriously!
  • SA Broker | 06 Feb 2014, 09:58 AM Agree 0
    Even if Westpac paid 1% upfront I still wouldn't use them. I'd rather focus on getting the deal done and moving onto the next one, rather than working with a difficult lender where things continually drag out.
  • GC | 06 Feb 2014, 10:11 AM Agree 0
    Significantly better service would be nice as well PLUS offshore bank staff who understand Australian Law would help. At the moment the service - post approval is an utter disgrace - from all lenders.
  • MCC | 06 Feb 2014, 10:12 AM Agree 0
    Commission increases mean nothing. In fact they move in conflict with the brokers fiduciary duty to the clients to ensure 'needs & objectives' are addressed first & foremost. That means proper research by brokers automatically diversifies use of lenders.
  • oldBroker | 07 Feb 2014, 11:07 AM Agree 0
    @Clawback. I agree with respect to clawbacks. I find it troubling that the MFAA, FBAA, or even the aggregators have not challenged the legality of clawbacks in court.
  • Papery | 07 Feb 2014, 12:24 PM Agree 0
    I expect that MFAA/FBAA will be highly unmotivated to challenge any Lender on anything, given the incestuous relationship between the two.
  • Always hopeful | 10 Mar 2014, 12:01 PM Agree 0
    Time to renew the memberships......I note MFAA have announced a 2.5% CPI increase.... I wonder if Lenders across the Board will also give a CPI increase to comms paid....
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