The FBAA has labelled an anti-broker campaign by CHOICE as ill-informed and diametrically opposed to their stated motivation of getting consumers the best deal on mortgages.
FBAA managing director Peter White said he was amazed that any reputable organisation would call for consumers to pay up-front fees for broking services when that would simply drive more people to banks.
He pointed out the interim findings of the royal commission said banks are driven by ‘greed – the pursuit of short- term profit at the expense of basic standards of honesty.’
“Brokers are transparent about their commissions and they are driven to achieve the best product for the consumer,” he said.
“The commissions paid to brokers from lender to lender have a negligible difference so it’s ridiculous to suggest the existing commission structure works against consumers.”
Only weeks ago, the ACCC also concluded that banks use their lack of transparency to stifle competition and make extra profit from customers.
“Informed commentators understand the role that mortgage brokers play in the financial services industry in this country and they know that consumers get the best deal from a broker who understands their situation and responds accordingly,” Mr White said.