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Chasing commissions could cost clients, argues fee-for-service broker

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Australian Broker | 26 May 2015, 07:00 AM Agree 0
The benefits to consumers of a fee-for-service broking model far outweigh the cost of paying for professional advice, says a Melbourne broker
  • Brado | 26 May 2015, 09:24 AM Agree 0
    So Andrew, is this a way to drum up business for yourself? Are you saying that brokers that dont charge a fee arent as good as you? Are you double dipping by getting commission as well as charging a fee? I would say that charging a fee and taking a commission, you are greedy and just want more money.

    Our business strongly opposes charging a fee for service, as the commissions are well and truly enough on most loans to make good income as well as cover the 'costs' like processing... and as we dont choose lenders based on commission, but on the overall package for the client, its always the best outcome for the client, not for us... that is service!
  • Vee | 26 May 2015, 09:32 AM Agree 0
    So you want to double dip, a fee from clients and comm from a lender.
  • John Whitten | 26 May 2015, 11:24 AM Agree 0
    How arrogant is this bloke. Because he charges a fee, he gives a better service!!!! If you want to charge a fee, good do it, but don't ever look down on us because we don't charge a fee.

    The majority of brokers I know don't even consider what commission they are getting on a loan when they are recommending banks to clients.
  • Broker | 26 May 2015, 12:03 PM Agree 0
    Chasing what exactly - 0.05% - spare me and please don't insult me.
  • king clive | 26 May 2015, 02:50 PM Agree 0
    You mortgage brokers should charge a premium to use your services like Asset Finance brokers do!.

    Now that will test your "value propositions" that you learn at sales school 101 wont it!
  • broker | 27 May 2015, 09:06 AM Agree 0
    I think he means charging a fee for getting the loan approved cause he owns a payslip factory so therefore his client will have better choice and can go at a second tier lender.
  • SEQ Broker | 29 May 2015, 10:12 AM Agree 0
    Hmm. The only reason to charge a fee for a loan that is not complex in my opinion is to offset risk. I have discussed and charged clients fees if the loan holds a large risk of causing a clawback. For example, turning up to do a loan where there is a for sale sign out front. Client decided they want to keep the property... um sure...

    Additionally, what narrow thinking and how offensive to say that brokers who don't charge a fee pick lenders based on commission. Given I do not see many vanilla loans these days, nearly all of my loans are policy driven and have zero to do with commission. I think the person making those charges has a streak of guilt themselves and should look to their own procedures before insinuating others do so.
  • Lou Scarano | 02 Jun 2015, 09:37 AM Agree 0
    If the commissions you get are not enough... may I suggest reviewing your business spending and working smarter and more cost effective??
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