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‘Skip the broker altogether’ say consumers

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Australian Broker | 20 Jul 2012, 07:30 AM Agree 0
Consumers believe going direct to the bank will secure a better deal, according to new research
  • BradQ | 20 Jul 2012, 10:34 AM Agree 0
    well.... the second biggest misconception is that brokers come at a cost. An article last week said that 26% of brokers now charge a fee ... so it isnt a misconception is it?
  • Patrick | 20 Jul 2012, 10:38 AM Agree 0
    The massive decrease in commission, with no parallel reduction in branch labour costs, is what has made the broker channel attractive. Had branch loan officer wages or business quotas, been adjusted to the same extent there would have been a long and bitter bank employees strike. It was just a another grubby profit grab by the fat cats in bank management.
  • Scott Beattie | 20 Jul 2012, 10:44 AM Agree 0
    What a great target to promote via the MFAA and or FBAA - using an MFAA member should be as widely known as using a CPA...
  • Mikeh | 20 Jul 2012, 10:56 AM Agree 0
    So, what do the fee for service advocates have to say now? Even when we don't charge, it still seems to be the public perception that we do. Or is this response directly related to thos brokers that are using fee for service?
  • Rach | 20 Jul 2012, 11:00 AM Agree 0
    So the MFAA Consumer Education is going well ?
  • Scott Hawkanson | 20 Jul 2012, 11:04 AM Agree 0
    Wow, this is research at its best. A Loan Market survey of brokers. The sample size must be absolutley huge!! Then the story follows up with a story that totally contradicts the first part of the story suggesting that "new research suggests a "shift in attitude of the lenders". I'm confused..................
  • Donut | 20 Jul 2012, 11:13 AM Agree 0
    What a load of rubbish! Who did they survey? Kinder Kids??
  • Mark Hewitt | 20 Jul 2012, 11:26 AM Agree 0
    Bank branches and direct sales teams will have a field day with this sort of research if we go down the fee for service / advice path. We must work hard to preserve the current commission model and educate consumers on the financial benefits of working with brokers.
  • SteveE | 20 Jul 2012, 12:23 PM Agree 0
    Maybe Loan Market have finally found through research that clients whom are already wary of real estate agents dont necessarily what to held by the hand & taken next door to another employee (all be it by association)to be sold another product that they could go into a bank & get themselves. A definate opportunity for Non-Banks to offer their competitive products & introduce Loan market brokers to the real world of how to sell more than one product line. Also an opportunity for MFAA to use some of those membership fees on winning over the general public with a further campaign on why they should be seeing a MFAA Broker
  • phil.gt3 | 20 Jul 2012, 12:29 PM Agree 0
    I can believe the misconception of many borrowers through ignorance; it is our focus at all times in that we try to have the borrower apply for less money than what lenders suggest; using logic of course. From there, we work on referrals and the message will spread; probably not as quickly as we like. As a case in point of doing the right thing; last week I saved one couple $8100 week in LMI when I ordered a 2nd valuation of a security property; the second valuation came in $50,000 higher than what the bank had on file from February. In the same week, I saved another couple $3400 approximately of LMI, when I reduced their loan by $3200 when a land & building contract came back $4,500 light. Mind you the loans were at 90% for $910k and $530k respectively. I don't think my borrowers will ever go near a bank; build respect and trust with your borrowers and demonstrate at ALL times that you have their interest at heart! My aim is always to reduce the amount of money they need to borrow and as a result improve the LVR when in LMI territory! Referrals cost nothing...
  • phil.gt3 | 20 Jul 2012, 12:31 PM Agree 0
    Mark Hewitt; I agree entirely!
  • Craig Dres | 20 Jul 2012, 02:50 PM Agree 0
    Mark Hewitt I agree. Preserve commission. Less brokers and less branches means remaining brokers will do well in future.

    Less brokers and less bankers means better br
  • FBAA waste of time | 20 Jul 2012, 04:55 PM Agree 0
    Hi Guys
    Dealing with brokers all over Australia
    We know 90% of them Have trouble putting a Mum dad deal together
    the underwriting Skills of Brokers are next to ZERO
    there are a few that do a good Job But most border on hopeless
  • KT | 23 Jul 2012, 01:50 PM Agree 0
    How bank managers can tell me the difference between an offset account and redraw facility? Not many I reckon......I bet <1% of them can tell me what impact it may have if I want to refinance that loan because I want to convert a previously PPOR loan to an IP loan.......not many will be able to articulate to me why it is better to have and interest only loan with offset account as opposed to simply have a cheap loan with a redraw facility!
  • Steve McClure | 23 Jul 2012, 04:22 PM Agree 0
    Read carefully, as Scott Hawkanson has. This is a survey of brokers (not clients) and their opinion of a client's perception. Even if all of their 600 brokers have correctly guessed their customers thoughts, it is hardly indicative, let alone a market-compelling sample. Yet, the first two words of the article states that "Consumers believe" as fact. As for the "FBA waste of time" (???) contribution, please let us know who you represent so that the 90% of us brokers can stop bothering you. Damned Lies & Statistics, it makes a good read.
  • Spinner | 25 Jul 2012, 12:00 AM Agree 0
    Consumers desire and need choice. Despite the industry impact on brokers, which have been pretty significant, the rising % of loans via brokers tells me customers are in fact by-passing Banks.

    As for FFBA waste of time - I too worked for a Bank and saw Brokers as glass half empty. Now on the side of good, its glass half full and having many tools in the toolbox vs a couple is hard to beat. Onward and upward!!
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