Big Switch as CHOICE leads passed to brokers

by Adam Smith29 Sep 2011

Brokers are set to see benefit from a much-maligned loan switching campaign.

Yesterday it was reported that Firstmac, Resimac and Mortgage Ezy had agreed to participate in consumer group Choice's One Big Switch campaign. Now Mortgage Ezy CEO Garry Driscoll has revealed to Australian BrokerNews that any leads the company receives from its involvement in the campaign will be passed onto Mortgage Ezy's preferred brokers.

"What we're doing is passing on the leads to our established brokers. We don't have a retail presence, we've never had a retail presence and that was one of the conditions of our involvement," Driscoll said.

Driscoll commented that brokers will be handed the leads from One Big Switch, and will then write loans for Mortgage Ezy. However, should a client's profile not fit the lender, Driscoll said brokers are welcome to take the lead and the loan to a different lender.

"If it doesn't fit with us they can submit it wherever they like, and if they get a better rate, great," he said.

Customers will also benefit from the structure, Driscoll said.

"It provides the customer with the best quality service levels because they're being serviced by experienced professional brokers," Driscoll remarked.

Mortgage Ezy's involvement of brokers in the campaign comes after Choice CEO Nick Stace told the Australian Financial Review the group planned to set up a financial advise business in direct competition with financial planners and mortgage brokers, and called the quality of financial advice in Australia "crap". However, Driscoll said brokers will now see benefits from a campaign of which they had been wary.

"It will benefit the brokers who have been supportive of Mortgage Ezy and the non-bank sector in general. We only deal with brokers, and that was the only way we were prepared to do it," he said.

Related stories:

Controversial switching campaign won't hurt brokers: Resimac

Consumer group blasts brokers

Choice defends independence

COMMENTS

  • by Diomedes 29/09/2011 10:48:30 AM

    Poorley planned campaign by Choice, by their accounts they have a "potential" 40,000 clients, that would require every mortgage broker in Australia to service that demand in a timely manner. This will back fire on Choice and any broker or lender involved in the campaign.

  • by Mark 29/09/2011 11:09:03 AM

    I thought the whole idea of this campaign was to have a bulk amount of people with some sort of bargaining power to get a better rate. What good does flicking the leads to different brokers do. Just another lead generation excersise and only specific brokers will benefit.

  • by positivebroker 29/09/2011 4:17:28 PM

    Yep, I read this as the banks have told One Big Switch they wont negotiate rates so they are now wondering what they are going to do with all the leads. Good luck to the brokers who get the leads but it would be interesting to see how the borowers respond when they find out One Big Switch did not get them a better rate?