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Reducing commissions could increase interest rates, claim brokers

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Your Investment Property | 07 Apr 2016, 03:22 AM Agree 0
As regulators look for alternatives to commission, brokers and lenders warn consumers could end up paying more for their loans
  • JacobLee | 07 Apr 2016, 11:33 AM Agree 0
    I am sorry, but brokers don't reach places banks can't. Brokers are just another distribution channel for the banks, they are also better at marketing and acquiring a customer at a lower cost than the banks. So for an example: if no brokers currently exist in the market would that mean that 53% of the borrowers wouldn't have been able to reach a lender?

    Also, broker's prefer to write back to banks who pay them the most amount of commission. Just like Aussie, who is now owned mostly by CBA. Brokers will have a hard time moving forward. The digital age will and should transform this broker space and open doors to better options for the consumers. Just like ClickLoans, Loans.com.au and Loandolphin things will pop up to clear the mess Banks have created ie. brokers who take 60 basis points and a trail of about 15 basis points.
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