New research, which suggests consumers believe brokers are too expensive an option, has one major aggregator concerned it could fuel the fee-for-service debate.
The Loan Market
survey asked brokers what the common misconceptions they faced from consumers were.
It found many believed going directly to a bank would yield a better deal, and that broker services came at a cost.
, general manager of sales and operations at AFG
, said some bank branches and direct sales teams "will have a field day with this sort of research if we go down the fee for service and advice path."
"It would be natural to try and make it appear the broker proposition was more expensive," he told Australian Broker Online.
"We must work hard to preserve the current commission model and educate consumers on the financial benefits of working with brokers."
He added that while the MFAA
does "a very good job in educating consumers," more marketing could be done in light of the survey results.
"We could step it up even further if need be. It's very important to develop awareness of what brokers do, and how necessary they are in the market," he said.
"Expertise, industry relationships and the ability to access different funds make brokers so important. If consumers go direct to the bank, they run the risk of limiting themselves. Brokers are essential."
's spokesperson, Paul Smith, agreed that the value of brokers needed to be reiterated to consumers.
“The reality is that a mortgage broker can negotiate your needs between several lenders and uncover discounts not available to those shopping on their own,” he said.