Our Consumer on Brokers survey names after settlement service – not commission – as clients’ biggest issue
Consumers are being let down by brokers after the loan had settled, results from MPA’s 2016 Consumers on Brokers reveal.
57% of consumers affected by last year’s rate rises weren’t contacted by their broker, whilst 60% of those consumers who have never been contacted since settlement would like more communication from their broker.
MPA asked consumers what their broker did after the banks imposed rate rises on existing customers last year. Despite the obvious opportunities for refinancing, just 15% of consumers’ brokers explained the reasons for the rise and offered to refinance the loan. This comes just after MPA’s Brokers on Banks survey revealed 65% of broker respondents say banks didn’t deal with the rate rises in a ‘fair way for new and existing clients’.
When it came to remuneration, 70% of surveyed consumers said being paid commission didn’t affect the service they received from their broker, a statistic relevant to ASIC’s review into remuneration. However 47% of consumers would also be willing to pay for their broker, albeit with an expectation of additional service, such as financial advice being included.
Overall 76% if surveyed consumers who had used a broker would use one again, MPA found. Their survey group was most likely to use a broker when buying an investment property, were most likely to be aged between 35 and 55 and earn $80-$180,000 p.a.
Read the full Consumers on Brokers report in MPA 16.06, on desks now. We’ll also be revealing the full results on MPA Online over the next two weeks.
57% of consumers affected by last year’s rate rises weren’t contacted by their broker, whilst 60% of those consumers who have never been contacted since settlement would like more communication from their broker.
MPA asked consumers what their broker did after the banks imposed rate rises on existing customers last year. Despite the obvious opportunities for refinancing, just 15% of consumers’ brokers explained the reasons for the rise and offered to refinance the loan. This comes just after MPA’s Brokers on Banks survey revealed 65% of broker respondents say banks didn’t deal with the rate rises in a ‘fair way for new and existing clients’.
When it came to remuneration, 70% of surveyed consumers said being paid commission didn’t affect the service they received from their broker, a statistic relevant to ASIC’s review into remuneration. However 47% of consumers would also be willing to pay for their broker, albeit with an expectation of additional service, such as financial advice being included.
Overall 76% if surveyed consumers who had used a broker would use one again, MPA found. Their survey group was most likely to use a broker when buying an investment property, were most likely to be aged between 35 and 55 and earn $80-$180,000 p.a.
Read the full Consumers on Brokers report in MPA 16.06, on desks now. We’ll also be revealing the full results on MPA Online over the next two weeks.
