By Paul Flakus

The Royal Commission Into Banking received much publicity last year but now that the report has been published. It is up to the various banks and Government of the day to implement what is necessary.

Certainly from a Finance/Mortgage Broker’s point of view, I felt the main issue was the recommendation of charging a fee-for-service. In the Royal Commission, this was flagged initially by CBA.

In my opinion, this proposed fee-for-service is of no benefit to the consumer/client. If consumers shopped around for a home loan, they would have an “enquiry” tagged in their credit file each time they applied. This raises concerns with a potential lender as they would see that the applicant is “shopping” around and this may have an adverse impact on the application. This would limit the ability of the consumer to obtain the best loan product that meets their financial requirements.

Banks only sell their own products and do not compare their offers with other competitors. This would be seen as a bad outcome for the consumer.

An experienced Finance/ Mortgage broker works for the client and ensures that the client fully understands what the requirements are. Plus, the finance/mortgage broker sits with the client and does a detailed scruitiny of their income, living expenses and other financial liabilities.  He/She then processes the submission matching for the best suited loan product for that client and their unique financial situation.

Your personal experienced Finance/Mortgage broker is always there to assist you from the start to the completion of the transaction. 

Ongoing support is there post settlement too. Clients will not be hand-balled from one bank to another, chasing different bank employees for answers to their questions.

Additionally, the Finance/ Mortgage broker is available to the  client  generally on a 7-day-a-week basis during the application and are available to see the clients after hours as opposed to a bank, which can only service clients during business hours. The Finance/Mortgage broker takes the stress out of the equation for the client. 

Paul and many of his fellow professionals have been integral members of the finance community addressing unique needs of their clients that banks cannot. Contact us today to find out how we can help.