Changes to increase borrowers’ costs and deny service.
The impact of the banking Royal Commission’s
recommendations for Canberra home owners.
The Royal Commission into banking could end up disadvantaging borrowers,
especially if policy makers fail to carefully consider the wide-spread impact of implementing recommendations as they stand.
If you want to continue to benefit from the services your local mortgage broker provides
– without incurring higher costs – take action now.
Join the campaign to protect your access to competitive loan offers and
ongoing mortgage services by clicking the link below.
By now you’ve seen in the news that the banking Royal Commission recently recommended that the cost of using a mortgage broker should be transferred from the banks to the customers.
Now, first things first: We’re here to help and will continue to act with your best interests at heart.
Our business has been built on putting the needs of our clients first. In fact, it’s the reason we’ve been able to serve the Canberra community for close to two decades now and the reason why over 90% of our new business comes from existing clients or word of mouth referrals. If we didn’t have your needs motivating everything single thing we do, there wouldn’t be so many of you recommending us to friends and family.
It’s in this continued commitment to always act in your best interests, that we feel it’s important you fully understand how some of the Royal Commission recommendations could impact you going forward.
The recommendations to put a blanket ban on commissions (starting with the removal of trail commissions) would significantly lower broker remuneration, kill competition between lenders, reduce access to credit and drive up the cost of borrowing for Canberra home owners.
Mortgage & Finance Association of Australia (MFAA) CEO Mike Felton explains: “The recommendations on brokers represent a massive win for the big banks. The Royal Commission was set up to protect (consumers) from big bank power but has simply entrenched it further”.
Whilst it appears that policy makers have rejected a consumer-pays model (for now), there’s still uncertainty as to how exactly the proposed changes could be implemented. But depending on the outcome, it could mean additional costs and/or less service for borrowers.
Considering the objective of the Royal Commission was to ensure better consumer outcomes, we’re not sure how either of these align with your best interests as a borrower.
The mortgage industry has historically failed to properly articulate the value we provide to borrowers.
So let’s look at the services you can receive from us.
Clarity around how much you can spend
Don’t risk your hard-earned deposit by bidding at Auction without an official ‘green light’ from a lender. We’ll conduct a thorough investigation into all your lending options and let you know exactly how much you can afford to pay for your new home. In no time at all, you’ll be house hunting with confidence.
A step-by-step action plan to purchase your home
You’ll never be left wondering where things are up to with your loan application or what needs to happen next. You’ll have someone on your side, helping and guiding you through each stage of the purchasing process – answering all of your questions along the way.
Tailored home loan solution, bespoke advice
There is never a ‘one-fits-all’ lending solution. Before we recommend a loan structure, we conduct a thorough investigation to ensure it’s the right fit. This means we’ll have conversations with lenders, double check lending policy and perform servicing calculations. Even better than knowing you’ve got the right loan, is knowing WHY it’s superior against the alternatives. That’s what you get when you work with us.
Plain-language finance solutions, with YOU at the centre of the equation
Say goodbye to nodding along with the guy at the bank when he starts talking in lending acronyms. The thing is, most lenders explain things from their own perspective not how it impacts you – the borrower. When we turn it around and consider everything from YOUR perspective (ie. How convenient is that for you? How does that change impact you? Does that particular feature provide you with benefit, or does it just make it easier for the lender to retain your business later on?) suddenly things aren’t so complicated.
A personal Project Manager
We work behind the scenes to ensure everything happens quickly, when it’s supposed to. We chase your application with the lender, liaise with the agent and work closely with your solicitor to ensure your property settles ASAP. The same goes for loan restructures because we know how urgent it is to settle things quickly, once you realise how much you’ll save in monthly repayments.
Round-the-clock Support
Some lenders process applications around the clock, meaning questions can be asked about your loan application outside of business hours and on weekends. It’s our job to handle these queries, whenever they’re asked. The same goes for your questions. Ask us anything and we’ll always do our best to respond quickly and comprehensively.
As much (or as little) analysis as you like
If you’re someone who wants all the charts and tables and comparison analysis before taking action, that’s what you’ll get. If you’re more of a ‘big picture’ person and prefer loan structure diagrams instead, that’s what you’ll get. You call the shots, not the other way round. You’ll get everything you need to understand the ins and outs of your home loan.
Fast turn-around (so you won’t miss out on that property)
The secret to getting your home loan approved quickly is knowing exactly how your lender likes to see applications presented. When you choose a mortgage broker who’s been working with lenders for almost two decades – a team with intricate knowledge of the internal processing systems of Australia’s largest (and smallest) lenders – you can be sure your application will be presented in *just* the right way to get it approved fast.
Support from an entire team
It’s frustrating when your question can’t be answered or progress just stops, “because Jimmy’s away and no-one else can help you.” When you work with a mortgage broker at MMO, you get the support of our entire team – there’s always someone who can help you. Client feedback told us this was important. So many years ago, we restructured our business accordingly. It’s also the reason why many of our client reviews mention more than one person – we work in small teams to ensure you receive the best service possible.
And here are the ongoing benefits you also receive:
Regular home loan reviews
We conduct regular reviews on your existing loans (which includes checking loan balances, current rates and lobbying lenders on your behalf for additional rate discounts). We also regularly provide strategies to help our clients get ahead on their mortgages.
Property valuations
Knowing what your property is worth allows you to make better decisions. We’ve found it also encourages borrowers to ramp up efforts to pay their loans down faster, as they can ‘see’ the wealth they’re creating with each additional loan repayment.
Interest rate discussions
We’re available to answer all your questions regarding potential interest rate movements and have discussions regarding your decisions to fix part (or all) of your home loan. In fact, this is something we chat to clients regularly about and provide analysis on market expectations in regard to rate changes.
Feasibility assessments for your renovation plans
Not only can we help you determine whether your renovation plans are financially feasible, but we’ll also help you sort through potential issues of overcapitalisation and address ‘what-if’ lending scenarios.
Assistance to remove your parental guarantee
When circumstances allow a parental guarantee to be removed, we assist clients with this process, allowing parents to regain full title of their property.
Assistance with ongoing loan maintenance
We assist clients to make minor changes to existing loans – for example, consolidating split loans into one or changing repayment types. We offer this service because we discovered that lender call centres didn’t always effect the requested changes correctly. And in other cases, call centres tried to upsell or make changes to existing loans that were not aligned to the borrower’s longer term objectives.
Help to decipher lender generated correspondence
Each time a lender sends mass correspondence to borrowers, we are inundated with questions as to what it means for an individual borrower. Remember, it’s your mortgage broker’s job to help with this!
We’re extremely passionate about helping Canberra home owners make better decisions around their mortgages.
And we’re extremely concerned that changes to broker remuneration will reduce borrower access to skilled and experienced mortgage brokers, meaning that home owners will not get the support they need to make informed decisions about their mortgage. Also worrying, is that it will prevent those who need the most support, from getting the help they need.
First home buyers should not be left on their own to navigate the purchasing process. Buying a home is the first step to establishing a strong financial future and without support to get it right the first time, you could end up putting yourself under financial pressure.
Home owners need access to experienced mortgage professionals, who also know and understand their local market. As someone upgrading your home, you need guidance as to what you should be doing in what order. Otherwise, you risk losing your deposit at Auction or paying for costly-and-generally-unnecessary bridging finance.
Investors need support to implement the right borrowing strategy for their property portfolio. Otherwise, you end up negating the advantages of owning investment property altogether.
We believe everyone should have access to the support, technical assistance and advice they need to make better decisions.
Better home loan decisions help ease financial pressure.
Better home loan decisions lead to an overall stronger financial position.
Better home loan decisions give you the option to live your life the way you want to.
We’ll continue to do everything we can as a small business, to protect your interests.
Firstly, because it’s our job.
And secondly, it’s the right thing to do.
