Big news today for Australian borrowers… the Labor Party backed down from supporting the ‘consumer pays’ model for getting a home loan.
They have now proposed a ‘bank pays’ model (bank pays the mortgage broker), with a standardised/capped payment of 1.1% of the loan value (only on the amount drawn down by the borrower, not on the total loan amount).
I’ve never understood the perceived ‘conflict’ around working for the client, but getting back by the bank. Anyone who works in this industry knows it’s only the client who matters… irrespective of what the banks do or offer, successful operators put the client first every time, because that’s what helps strengthen relationships, and it invariably leads to repeat business, which is what we all survive and thrive on.
Question whether an upfront payment only, rather than an upfront payment followed by ongoing deferred payments will result in the best outcomes for consumers, but the key message today is that the broking industry should at least now remain viable, and that means consumers win…
More choice, more competition, lower prices, and better service. Common sense has prevailed!
