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Brokers beating banks with loan renegotiation

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Australian Broker | 09 May 2017, 08:25 AM Agree 1
A higher number of clients are using brokers rather than banks to get a better mortgage rate, a new survey has found
  • Ed Ridge | 09 May 2017, 08:56 AM Agree 0
    And that is one of the reasons they commissioned Sedgwick.
  • Tipping Point | 10 May 2017, 10:30 PM Agree 0
    Confirms where consumers 1st thought is. The competitive advantage the broker has is many tools in the toolbox and the ability to sell against a single point of offer.

    We saw Westpac put on 600 branch managers when the broker channel was exposed via GFC and they couldn't manage because there was no learning process, where in the past you spend 4 years under an experienced manager earning your stripes. Broker channel marched on unabated.

    Given the tipping point where the consumer (and business customer) is looking for brokers, before banks has past, Banks need to accept brokers are actually a positive and a variable cost where the following costs are removed from the Bank:- No holiday pay, payroll tax, sick leave, redundancy, unfair dismissal, office indiscretions, travel costs, computers, motor vehicle costs, occupancy, superannuation, maternity, paternity, long service leave, rent, outgoings, staff appraisals, bonuses, phones, unengaged employees, OHS costs, general insurance costs, broker data entry, broker NYC forms, and...................... no wage to pay! Further, you still have clawbacks?? This was a from 15 years ago when a broker only had 5% of the market and had to churn to put food on the table.

    Mr Sedgwick is an AO and we respect this. Taking the above into account and seeing the Bank's profits march unabated driven by mortgages, your getting economies of scale with the variable broker cost.

    Personally I would have included a few positives in the report and questioned why Banks can throw $1500 to a new client, yet leave the broker (who is actually the customer) with a contingent liability for up to 2 years.

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