Mortgage Choice promotes alternatives to big four

by BN04 Jun 2009

Non-bank lenders and second tier banks are being given a leg up by Mortgage Choice with the franchise group urging its network to consider alternatives to the major banks.

The AFR reported that a circular sent out by Mortgage Choice invited brokers who may be frustrated with lender turnaround times to attend a workshops presented by mortgage providers outside of the Big Four.

Lenders invited to speak at Mortgage Choice workshops in June include ING Direct, Homeloans Ltd, AMP and FirstMac.

Mortgage Choice CEO Michael Russell said the next round of workshops were focused on lenders with "clean pipes who are best equipped to handle an increase in volumes".

Besides boosting lending competition, the writing of greater business through non-bank lenders would reduce Mortgage Choice's reliance on revenue from the major banks which have cut commission and frustrated brokers with slow turnaround times and complex payment models.

Non-bank lenders have to date not cut their commission rates.

Will you be attending any of these workshops? Send in your thoughts to

Related stories:

Mortgage Choice turns focus to diversification


  • by Alistair Kelsall 5/06/2009 7:40:49 AM

    This is a the same advise that I have passed on to our team of brokers. If the banks want to start delivering 2 levels of service, efficient for the branch and slow for the brokers then it's time we voted with our business.

  • by SteveOZ 9/06/2009 1:16:44 PM

    I agree with this, however the hard part is the big 4 have policy that allows a huge influx of business. The smaller lenders are hamstrung by their own policies and a tough market with higher than usual level of defaults and other policy dramas. It seems everyone wants the easy deals (Me included LOL) however this i just not the environment at the moment. Good luck all

  • by Louis 9/06/2009 2:47:47 PM

    Non bank lenders can still provide a superior service and can pay better commissions. However these are your considerations:

    1. Their policies are LMI policies which are equal or harder than the banks.
    2. Their rates can be competitive with the banks depending on how much commission you want to get paid.
    3. If they get an influx of applications, they too will provide slower turnaround times but their staff are more committed to staying back to catch up. Certainly not 2 weeks before they look at it.

    If you have a vanilla loan you will certainly get a quick response. If it's a Lo Doc, you will experience difficulties.

    If you haven't tried non-banks, give them a shot. There are many originators sourcing funds from Firstmac, Challenger and Resimac. Look them up and have a chat.