Myth busting: Brokers choose their loans based on commission. Rubbish.
Brokers are paid by commission - but - it's pretty much the same commission across the board (with the exception of what we call ‘non-conforming’ loans which come with ‘non-agreeable’ interest rates and you’re not going to take up that offer unless you absolutely need to), so I couldn't tell you which lender pays more or less because I simply don’t give it any attention. And the difference is negligible so I am far better choosing the perfect loan for the you and having you be beyond thrilled and tell all of your friends about it.
Occasionally lenders will offer an incentive like a bonus commission, sponsor a conference, some movie tickets or a small gift, just like you could be offered performance bonuses or sales target incentives at work – and just like the corner shop runs competitions sponsored by their suppliers – but again, you’re still only going to be offered the lenders who are right for you, no minor incentive is going to sway that. All of this is disclosed with full transparency and we often get better pricing than you would from the lender so that’s a double win, excellent service and cheaper too. And on the topic of transparency where else do you find this kind of disclosure – sure don’t see it in a car yard and I am quite sure they are making more commissions on a car sale.
To be fair there are some lenders who don’t accredit brokers and therefore we can’t access their loans, they’re on our radar and we keep abreast of what they offer and there’s not often anything that’s outstanding either in terms of rate or in terms of policy and service to you. Sometimes you will luck out if you’re a straight forward set and forget type customer with one of these online only lenders, however our experience is that most people will hit some kind of snag with them at some stage and look to refinance away for real service and support & someone you can speak to in Australia who will help you fix the issue.
At the end of the day our business is built on doing the right thing by you in all instances, and because we’re good people.
So if you think brokers will be baised in their choices, I hope this makes you feel better. We are after the best choices for you.