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MFAA Prosper : Mortgage and Finance Brief 09
Viewed in the simplest possible way, the case for charging a fee seems pretty straightfor ward; after all, which other industry -- comparable or other wise -- offers its ser vices for free? However, as we all know, that's not necessarily the full story. The commissions received from lenders can equate to a very good living for those brokers who maintain relationships with customers and place them in loans that will enable them to achieve their short, medium and long-ter m goals. For a lot of brokers, the industry is working for them at present, and they are keen not to disr upt that. "The commissions I get are substantial and I do not need to charge a fee to make my business viable," says John Whitten of Individual Homeloans, Gladstone, Queensland. "I fail to see how charging a fee would help." Mark Collins, Director of Leewin Finance in Dunsborough, WA, agrees. "The system actually works at present. The customers are disclosed the amounts of commissions from the banks, and there is a high level of trust between the broker and their customers." Collins says his concern is that charging a fee could increase the level of complaints. "It could throw the industry into disrepute when we have worked so hard to get it to this point." With the expanse of information now available online, there is a school of thought that more customers could be tempted to do the research themselves, rather than paying someone else to do it. Steve Pienaar, a broker with 11 years' experience from Australian Mortgage Brokers, Pullenvale, Queensland, says, "More people are becoming inter net sav vy. They will do the homework online and go straight to the banks at no cost. "If I look at my first-time buyers, there is not a hope in hell that they will pay $3,000 to a broker for a $500,000 loan. They would go straight to the bank and get whatever the bank offers them to save the $3,000. They would rather spend the money on the new home, Fee for service? The fee for service issue is certainly provoking a lot of debate, with balanced and passionate views firmly held on both sides. Do brokers feel it's a viable proposition, or an issue that needs put to bed immediately? Words Martin Wanless Mortgage & Finance brief | 21 News
Mortgage and Finance Brief 08
Mortgage and Finance Brief 10