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Are online lenders a threat to the broking industry?

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Australian Broker | 12 Feb 2015, 07:00 AM Agree 0
An online lender, which doesn't distribute through brokers, says it has more than doubled its home loan applications since dropping its interest rate. Could this cause any threat to the broking industry?
  • Coast Broker | 12 Feb 2015, 09:23 AM Agree 0
    A big fat no as they provide no customer service and no after sales service. As I say to prospective clients the biggest thing people do in life outside of relationships and children is to buy a property and therefore the next biggest thing is having the right mortgage.
  • Awesome - Albert | 12 Feb 2015, 09:23 AM Agree 0
    Why doesn't Kim Cannon offer the same product to mortgage brokers - if the clients really are "increasingly opting for 'convenient' online lending" then he wouldn't need the price difference in the product offering. The truth is that the low rate is main reason people use this product. Sorry but you get what you pay for and when you take the advice out of what we do, you are left with a lot of people borrowing more than they should and with loans that aren't the most suitable...
  • Pav | 12 Feb 2015, 09:51 AM Agree 0
    It's not about buying a $1000 airplane ticket. It's their life's savings. Smart people always wants to get best advice on different products and specially after service.
    On the same time, these online products should be offered to brokers. Online market can increase further.
  • Michael Kent | 12 Feb 2015, 09:57 AM Agree 0
    As a broker I certainly don't support as in put any deals to First Mac. I lose a lot of business to as I cannot beat 4.23%. Then we have a BDM from First Mac on the phone trying to drum up business!

    Just plain dumb business if you ask me. The profit they make from is probably zero when you consider the amount of deals First Mac is losing from the broker channel.
  • Broker | 12 Feb 2015, 11:51 AM Agree 0
    Agree 100% with you Michael, why would we support First mac when they undermine us - for the matter of a pittance in the margin difference.
  • Tim | 12 Feb 2015, 12:09 PM Agree 0
    It appears Kim Cannon has decided that he is just going to run an on-line business because like Michael and Broker I fail to see why anyone would now submit loans to Firstmac.
    Who knows Firstmac could be writing to broker clients right now encouraging them to have a look at "" products and website.
    We are not fools Mr Cannon. Good luck with your on-line business cause that's all you'll have shortly.
  • Tim Slarke | 12 Feb 2015, 05:47 PM Agree 0
    Channel conflict of the highest order...
  • CharlieX | 15 Feb 2015, 09:05 AM Agree 0
    Interesting concept by Firstmac. I thought one of the rules of the lenders is not to not shoot themselves? What will happen if brokers stop sending applications to Firstmac? is its single distribution channel,, going to generate enough volume to cover operating costs of the company?

    double crossing the hands that feed you, very risky business?
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