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Commission changes could hammer mortgage franchise

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Australian Broker | 26 May 2017, 08:25 AM Agree 0
If lenders opt to pay lower commissions, one major franchise could be heavily impacted due to its remuneration model
  • Broker | 26 May 2017, 10:03 AM Agree 0
    73 % upfront and 61% trail , I'm amazed they have Brokers at all..!

    Don't think I would be buying any shares any time soon
  • Tough times! | 26 May 2017, 10:32 AM Agree 0
    'putting it in a good position to pass on the negative impact of lower commission rates to franchise owners' .... Sounds to me like they should be cutting some 'fat' from the top!
    Why would anyone buy into that model?
  • Clarke Kent | 27 May 2017, 08:38 AM Agree 0
    I never realised how much meat MC take from the bone - there must be lots of fat in the hierarchy - at those splits would have to be doubling up as an Uber Driver to feed the family
  • Clarke Kent | 27 May 2017, 08:39 AM Agree 0
    Totally agree
  • Cubeman | 29 May 2017, 09:22 AM Agree 0
    It's hard to believe that brokers promote to their clients to save on the mortgage by offering a refinance yet stay on commission splits (perhaps with handcuffs / exit fees is the reason they stay??) - but any broker who hasn't reviewed their commissions split arrangements / franchise / aggregator agreements etc is no different to a customer who banks with the CBA (as an example) and has always done all of their lending with them as it's all they know!!
  • Perspective | 29 May 2017, 09:51 AM Agree 0
    Let's keep it in perspective. The split sounds like a lot but that's what they are paying for the brand, advertising & leads. Each to there own. p.s. I'm not a mortgage choice broker.
  • Mortgage No Choice | 29 May 2017, 10:46 PM Agree 0
    Unfortunately, when an external impact occurs such as less commiss, franchisors will shore up their profit centre and squeeze the branch as they have contracts that the branch looks at and says "ouch". $26.50 per hour is now $22 per hour. Why wasn't I $32 p/h when all was good?

    Been there and know the outcome. Not good!!
  • underpaid broker | 04 Jun 2018, 08:47 PM Agree 0
    The majority of MC Brokers do not get those payouts
  • nick | 08 Jun 2018, 08:19 PM Agree 0
    Totally Agree..
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