Australia’s biggest mortgage broker trade body has voiced concern about comments made by Big Four bank CEOs regarding loan approval times.
The Mortgage & Finance Association of Australia (MFAA) has hit back after various bank CEOs stated to the House Economic Committee in Canberra that bank branches, and not mortgage brokers, were the quickest way to get a loan approved, and that loans with Big Four banks can be approved within hours or a few days. Data from two major aggregators say that those who apply for loans with Big Four banks wait a median of 23 days to get their loans approved.
Big Four bank CEOs described the broker channel as taking “slightly longer” than in branch and as taking “an average of around 12 days” to get loans approved, causing outrage in the broker community.
“We are obviously concerned that the leaders of major lenders are promoting these turnaround times, when most customers applying through brokers – who represent approximately 60 per cent of all Australians seeking a home loan – are experiencing nothing of the sort,” said Mike Felton, CEO of the MFAA.
“For brokers and their customers, this is not a level playing field, and the evident prioritising of customers who come through their own branch network is having a massive competitive impact. In today’s extremely competitive housing market, waiting more than three weeks to be approved is a nightmare for customers who are trying to bid on a home and secure finance.”