News

Brokers make statement against fee for service model

15 January 2019

Mortgage brokers have made a clear statement to the Commonwealth Bank in a new HashChing survey that found more than half would cancel their accreditation with the major bank if they introduce a fee for service model.

The survey asked a cross-section of mortgage marketplace HashChing brokers a variety of questions on a variety of topics and 57 per cent of them said they’d avoid using CBA unless necessary and would possibly cancel their accreditation.

Nearly a third of the respondents said they would continue using CBA as normal if they used a fee for service model.

HashChing CEO Siobhan Hayden said the response from brokers was no surprise.

“Brokers are a free resource for consumers and one that they should absolutely take advantage of,” she told Broker News.

“The difference between using a broker and going straight to the bank can be hundreds of thousands of dollars over the life of the loan.”

“Those who seek help are also likely to develop a more strategic approach to managing debt in general and stand a better chance of securing home loan approval in a market that has more restrictions than ever before.”

On the subject of house prices, nearly half of the brokers surveyed agreed with the Morgan Stanley forecast of house prices possibly dropping by around 15 per cent nationally.

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