Are Mortgage Choice Mortgage Brokers Getting A Raw Deal?
Is the Mortgage Choice Bigger Picture Just Another Greed Story?
I’m a Mortgage Broker based in Brisbane and have been for approximately 17 years. I choose a non franchise aggregator to group my lenders for good reason.
Just as the global financial crisis hit, lenders responded by cutting the amount they returned to a mortgage broker for introducing, arranging and managing the loans. They were also asking brokers to do a greater share of their administration work. A bit like your boss coming in an telling you of a pay cut while at the same time significantly increasing your responsibilities.
It looks like Mortgage Choice took another stick to their brokers (when they could least afford it) and introduced ‘volume hurdles’ most of the industry would see as grossly unfair and inequitable, leaving many of their brokers considerably underpaid compared to their peers. These volume hurdles are not unique to Mortgage Choice and a solid reason behind my choice of ‘aggregator’.
I for one want to make sure I’m paid fairly, as I use this revenue in turn to attract new clients, but more importantly to support existing ones. If you have a loan with a broker being unfairly remunerated, you are unlikely to be ‘served’ in the same way as from a broker that is being paid fairly. Remember – a broker uses upfront and trailing incomes paid by the lenders to support the day to day operating costs of a business that supports clients, their goals and queries with an expert and prompt response – something the banks seem to have lost the art of long ago.
I moved at the time of the GFC to a different broker group that was at the top of their game at making sure their brokers received a share of revenues at the top of the pack in Australia. This enables me to run a profitable business, but more importantly to return the level of service and outcomes my clients expect.
Mortgage Choice needs to lift their game and pay their brokers appropriately.
Fast facts :
- Mortgage Choice is approximately 20% owned by CBA at the time of writing
- Aussie (Financial Group including the Mortgage Broking arm) are 100% CBA Owned
- Talk Home Loans is not part owned by any lender
- Talk Home Loans is not a franchise arrangement but a part of the largest independent group of Mortgage Brokers in Australia (via an aggregator). We are remunerated fairly for the business we introduce and manages and are family owned
- We will never be part or wholly bank owned – end of story
The story that broke on ABC is well worth considering and a look here:
Michael Schipper from Talk Home Loans is a Mortgage Broker operating in Brisbane, with over 17 years of experience and prides in the levels of service and quality advice he provides his clients.
Chat to him today about a better deal.