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Bank ownership of brokers 'irrelevant' to consumers: Symond

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Australian Broker | 04 Sep 2014, 08:09 AM Agree 0
Aussie chair John Symond has claimed banks' control of mortgage broking businesses does not pose a threat to competition
  • bias | 04 Sep 2014, 08:35 AM Agree 0
    Says he who is owned by cba
  • May | 04 Sep 2014, 08:41 AM Agree 0
    Wasn't it John Symonds who started Bank Bashing as a National Sport back in the Aussie Home Loan days?
    "At Aussie, we'll save ya (from the banks)"
    It made life hell for us working as tellers. Customers would spit and throw passbooks at us because banks (and those who work for them) were the bad guys.
  • Broker - 16 Years | 04 Sep 2014, 08:48 AM Agree 0
    Question ... Do Aussie Brokers lodge more Home Loans with CBA than any other Bank / Lender ?

    Answer - Hmmmmm
  • Tony | 04 Sep 2014, 08:48 AM Agree 0
    John is nothing more than a hired hand these days. You might remember in his early days it was "don't trust the banks", banks are bastards", "we'll save". How the worm has turned.
    The banks wont screw us all over for a dollar will they? unlike BP, Shell or Caltex.
  • Wozza | 04 Sep 2014, 09:01 AM Agree 0
    Answer to Broker 16 years - definitely no from this Aussie broker of 8 years.
  • settlements | 04 Sep 2014, 09:11 AM Agree 0
    Wozza, cba always in top 3 for aussie settlements per month and often in first place
  • hellsbells | 04 Sep 2014, 09:17 AM Agree 0
    I like it..... every time im up against a aussie broker I just tell the client they are owned by cba and that you will probably get pushed into a cba loan.... I almost always get the gig..

  • John Whitten | 04 Sep 2014, 09:22 AM Agree 0
    Of course Aussie John would say that. I feel that the majority of customer don't care who owns the aggregator, and most don't know what an aggregator is, however in the interest of transparency the ownership should be declared in NCCP documents. Some aggregators are offering brokers who put a certain volume of loans to aggregator owned products, fee discount and I do not feel this is healthy for our industry.
  • CRT | 04 Sep 2014, 09:37 AM Agree 0
    And from another Aussie Broker, CBA makes up about 10% of my business and will remain that way, and avoid the Big 4 with a passion, why pay a package fee for the priviledge of getting a higher rate?
  • Wozza | 04 Sep 2014, 10:16 AM Agree 0
    Hellsbells should stop telling his clients porkies
  • Dont speak for me | 04 Sep 2014, 10:29 AM Agree 0
    Wrong wrong wrong. There are plenty of consumers who very much care who the service provider is. Price is secondary for many of us, and that includes for lending and petrol.
  • CRT | 04 Sep 2014, 10:39 AM Agree 0
    Hellsbells I wonder how far you get telling outright lies? Ethical much!
  • Greg. | 04 Sep 2014, 10:40 AM Agree 0
    Do you Aussie Home Loans brokers have a White Label (CBA Funded!!) client offering???
  • Martyn | 04 Sep 2014, 10:45 AM Agree 0
    What a load of drivel. Spoken by the Clive Palmer of our industry. Another one tying to sell us a pup!
  • Stomper | 04 Sep 2014, 10:54 AM Agree 0
    Thats because their clients are unaware. Not because they are transparent!
  • Get real | 04 Sep 2014, 11:17 AM Agree 0
    Wozza - 3 things:
    1. Are there incentives for writing more CBA as an Aussie broker?
    2. If it has no effect, why would it be offered?
    3. If it has an effect, this must contravene independence if the product offering is no different.

  • Jo Broker | 04 Sep 2014, 11:30 AM Agree 0
    Ummm... I'm pretty sure CBA would be in top 3 across most groups.
  • Stomper | 04 Sep 2014, 11:45 AM Agree 0
    OK, so lets look at Choice, FAST and Plan. They get special incentives for writing "Advantedge" loans. i.e.: 100% up and trail on Advantedge loans and also better comms accross the board if they write a certain volume. Don't tell me this doesn't impact things when it comes to how brokers behave because it does. By the way, when was the last time one of you so called experts refinanced a client and had the new loan term the same as what was remaining on their current loan term? If you don't.....your costing them THOUSANDS!
  • KP WA | 04 Sep 2014, 12:11 PM Agree 0
    Aussie John has a different tune now that he has sold out to a Bank of all people!
  • Wozza | 04 Sep 2014, 01:26 PM Agree 0
    Reply to Get Real - GET REAL!!!
    CBA pays the same and sometimes less than other lenders
    This goes back to a recent discussion about commission rates - I favour the lender who provides the best deal for my client just as you should do and I have yet to meet an experienced Aussie broker who doesn't do likewise
    And to Greg - you mean Aussie Home Loans? Yes and funded either by CBA or Macquarie so I can't see a conflict there either
  • marty | 04 Sep 2014, 01:45 PM Agree 0
    @ Stomper "when was the last time one of you so called experts refinanced a client and had the new loan term the same as what was remaining on their current loan term? If you don't.....your costing them THOUSANDS!"

    Only if the client only ever pays the minimum repayment over 30 years. Pretty dumb comment form a broker. Know any clients with who have been in the same home loan for 20 years? I don't.
  • Greg. | 04 Sep 2014, 02:53 PM Agree 0
    Wozza-Thanks for clarifying. So the point being is the so called 20% drop in CBA true As claim by JS? What if it is aggregated with Aussie Home Loans (CBA Funded?)....I doubt a drop at all! The fact is the acquisition by CBA was similar in the rationale of NAB in paying circa $400M for FAST/PLAN/CHOICE....Home Loan market share.And they called Shane Warne the king of spin.
  • Get real | 04 Sep 2014, 04:01 PM Agree 0
    Sorry, Wozza.
    I was not being critical, just asking objective questions.
    I know what CBA pay. My question was "do you have more incentive to write CBA?" Are you incentivized by either a greater percentage of commission or any other benefit to write CBA?
  • Stomper | 04 Sep 2014, 04:29 PM Agree 0
    @ Marty, how many people can afford to make additional repayments nowadays? Very few. Research shows most will retire with a home loan debt. We are seeing increasing "upside down" clients due to poor advice from banks and brokers and just chasing easy cash flow situations (Poorly structured debt consolidation etc). Marty, how many people have been set up with a good debt reduction strategy if any at all? Why do so many brokers have habitual debt junkies on their books? There is a serious issue out there and it is a lack of education. Also, do the math Marty. they don't have to stay in the loan for 20 years. If you're offering them a refi or better rate every 2 years without considering the impact your neglegent and shouldn't be in the game.
  • Broker1 | 05 Sep 2014, 12:50 PM Agree 0
    Exactly what Wozzo said.
    In the 7 years I've been with Aussie and the 6 brokers I've trained in my stores, and the 2 years representing franchisee's to the corp exective I've never had or given any incentive or directive to write CBA or any other Aussie product over any other lender, period.
    CBA's settlement share overall within Aussie is declining 20% as John said and the Aussie CBA funded lending is increasing simply due to natural product/price/service superiority. It's rates are harper than 97% of our panel, with better policy, upfront AVM/full valuations, 24 hours approvals, why wouldn't it be popular?
    For the doubters, ING Direct pay's more than CBA and the Aussie products, so no, no commision incentive either.

    Like any decent broker will know:
    1.Purpose 2.Policy 3.Service 4.Price 5.Product
  • Old Broker | 09 Sep 2014, 05:22 PM Agree 0
    Hey Wozza
    Lets paint a picture...
    CBA take over in a few years and Aussie J is out of the picture.
    CBA then change the comm structure and leave you brokers high and dry... possibly. Remember if its in the contract it can be done so long as its within fair and reasonable in Fair Trading eyes.
    You are then left with diddly squat and have to start all over again....ohhhhh
    Remember someone once said that the CBA share price at $5 was a rip... now the dividend is that.... good country australia ...
  • Marty | 10 Sep 2014, 09:30 AM Agree 0
    @ stomper. You say people can't afford extra repayments? My client certainly can. Also how do you reconcile that 75% of the big banks clients are more than 3 months ahead? Keeping the term the same is not a good idea for "debt junkies" as you say but for a majority of borrowers it's irrelevant.
  • Ed Ridge | 10 Sep 2014, 10:11 AM Agree 0
    Wow I thought Aussie was a broker, this feels more like a broker lender discussion.
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