Three in four home loans are written by mortgage brokers, infuriating banks and delighting customers
Three in four home loans are written by mortgage brokers, infuriating banks and delighting customers
The banking royal commission described the way in which mortgage brokers are paid as "conflicted remuneration" and "money for nothing". Customers don't care.
The banks are upset that they pay a lot to the brokers, yet they dont offer a rate that's more competitive if someone doesn't use a broker. So customers have nothing to lose. The application process is needlessly opaque to try and obfuscate the process for mortgage seekers. If it was simple and clear, only the lowest rate would get any business.
If it was simple and clear, only the lowest rate would get any business.
The big 4 banks don't want that either, though.
I don't believe the big banks are "infuriated". The current situation is no doubt the best situation it's possible for them to effect. They could, as you point out, change their own processes, and they've got a lot of market power they could use to change other things as well. But they haven't.
Exactly. So who framed the story this way? Where did the stats come from?