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Consumers baulk at mortgage advice fee for service

Discussion in 'Finance & Banking' started by Simon Hampel, 11th Jul, 2011.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

    9th Jun, 2005
    Sydney, Australia
    Consumers baulk at mortgage advice fee for service | Money Management

  2. AsxBroker

    AsxBroker Well-Known Member

    8th Sep, 2007
    Sydney, NSW
    It's amazing that people don't want to pay for good advice...
    Maybe the industry funds haven't pushed it enough?
  3. GregR

    GregR Well-Known Member

    13th Jul, 2009
    Berwick Vic
    The mortgage broking industry shoots itself in the foot too often.
    I see clients coming from other brokers who only ever deal with one lender, clients may as well go directly to that lender anyway, they are not getting advice, just getting a paperwork shuffle processor.

    Legislation is not going to change that, it is up to clients to do their research, ask for evidence how many lenders do you use, what percentage, what is your recommendation based on, how do you arrive at it, what are other similar or comparable lenders so I can see etc.

    That said, if brokers can demonstrate a service that clients will not get from going to banks or lenders direct, then a fee for service model can and does work.

    If it is a loan for a simple owner occupier, it is hard to add much value as a mortgage broker other than save some time and perhaps push for a better discount but clients can do that anyway and rates are easily seen on internet comparison sites. You will often get faster approval process by going directly with branch based lenders.

    Refundable fees will come in for good brokers and clients who do not value good service, let them go to a branch and get what they pay for, which is nothing other than being sold a lender loan.