With all of the media coverage about the ongoing Financial Services Royal Commission, we wanted to touch base with you and understand any concerns you may have with:
- your individual lender,
- the broader mortgage and finance industry in general.
While most of the cases of misconduct reported have involved the banks and their own staff, brokers like us recommend banks and other lenders. As such, you may have some questions. We feel confident the inquiry will deal with the issues identified and stop these reoccurring, which is positive for all borrowers.
However, it is important you understand the broking sector as a whole is well-managed and has stringent compliance regulations in place. Anyone who has completed a loan using our services in recent years will attest to the level of compliance we undertake to ensure our recommendations, to
you, take into account your individual needs and circumstances.
As part of our role, we recommend banks and other lenders to fund loans, based on your needs and circumstances, but we are very different from banks as follows.
- We offer whole-of-market advice. Whilst we don’t have a relationship with every single mortgage lender in Australia (that would be impossible), we have a panel of 40+ lenders. Those 40+ lenders represent approximately 98% of the mortgage market in terms of volume. A Banker can only offer their own bank’s products and pricing.
- The price you pay (fees and rates) is the same as going directly to a lender. In fact, we source pricing from a range of lenders that fit your parameters (as part of our Needs Analysis process) and often get you a better deal than going directly to a bank.Here’s a simple example to highlight the difference. A Banker at Bank A is not going to tell you that Bank B is offering a lower interest rate. Further, a Banker is unlikely to come to you and advise the interest rate on your current loan product is no longer competitive and you can get better with them or elsewhere. As brokers, we will provide that feedback and assist with repricing or a refinance, as required.
- The commissions paid to us by all lenders do not vary by any material amount. Therefore, there is no incentive for us to recommend any lender over another. (There is widespread industry evidence to back this up).Unlike the banks, we have always provided disclosure of any commissions or benefits received. There are no hidden commission, bonuses or rewards that we receive apart from the commissions disclosed in our compliance paperwork.
As brokers, we see our role as acting in your best interests. We have no particular affiliation with any one bank or lender. They are all simply a source of funding to meet your needs. We provide the structuring and product advice based on the comprehensive Needs Analysis we complete with you before making any recommendations. We also undertake to work with you over time to ensure your loan product and lender is still right for you.
When all is said and done, we want you to feel fully comfortable doing business with us and with the solutions we recommend. We believe we do all we can to support and assist you and your goals but are always open to your feedback.
We would also like to ensure that you are happy with your current loan and lender. As such, we encourage you to speak with your 'All About You' Financial Solutions Finance Manager should you have any questions at all. The offer is also extended to speak with me as the company Director. Either of us is very happy to answer any questions you may have.