FACT: Mortgage Brokers provide competion and choice in the lending market for consumers.
FACT: 60% of all mortgages are written through a mortgage broker.
The Royal Commission has shaken the industry and caused angst throughout the mortgage broking fraternity. Uncertainty makes it hard to stay focused, but the team at Millennial Broker are here to still offer the same service that we are in business for, assisting with our clients goals and objectives.
As a broker it is our role to make sure that we are providing our clients with the best lending options that suits their needs. This allows them to make an informed decision. Without brokers consumer options will be limited as the smaller lenders will no longer be able to compete. Unlike the big 4 most don’t have a shopfront and rely on brokers to send them business.
I also find that most brokers go out of their way to make sure that their clients are being looked after. This Sunday at 10am I am meeting a client that lives 28km from my residence. As a broker I will providing this client with multiple options once I have found out their goals and objectives. I have access to over 30 lenders and thousands of products, so we should be able to match this client with the right product. What bank is willing to do this? For them to have the same options they would have to meet with each bank individually, this would not be a viable option as it is too time consuming.
We still face challenges that could be detrimental to our business therefore impacting on the service we can provide. To avoid this we will need the assistance of all parties that have had dealings with mortgage brokers in the past. Without us rates and fees will increase, especially if the commissioner’s recommendations are implemented in full.
We DO NOT want to see a fee for service model introduced. This means that anyone wanting to get a new mortgage (purchase or refinance) the bank or broker (if they still exist) will be charging the consumer a fee to do so. Talks are this fee will be around $2,000-$2,500. We DO NOT feel that this is in the best interest of the client as an additional cost will result in less clients seeking advice for a better product or even considering to purchase at all. The big 4 will be the only winners in this scenario.
Brokers work for thier clients, not for the banks!
Please support brokers through the various online channels, social media and any petition/survey you may see. The impact of these changes are considerable to every homeowner and future homeowner in Australia.
Thanks for taking the time to read this, Justin Abbot, Director and Finance Manger of Millennial Broker.