They've done it now!

Wayne Swan has been very keen to ban all exit fees on home loans and now he has his wish. It sounds like a good idea however it could pose a serious risk to competition in home loans. The smaller and non-bank lenders can't absorb high upfront costs the way the big boys can, so it's likely they will have to charge higher upfront fees to remain viable.
Whereas before only borrowers who left their lender early incurred fees, now everyone will have to share the pain.
Watch this space.......
(Want to know more? Take this link.)

Broker clients are happier!

We always thought our clients were happy souls (in the main). Now here's proof!

According to the eighth MFAA/Bankwest Home Finance Index survey, 67 per cent of respondents felt they got a better home loan deal from a broker than a bank.

MFAA chief executive Phil Naylor said the research had revealed that borrowers liked using brokers because they are knowledgeable and have access to a wide range of lenders.Experience was also a strong indicator, with 30 per cent of respondents saying brokers are more experienced than lenders, up from 24 per cent last year.

Since many of us left banks to become brokers, that's well known to us. Great to see the perception catching up to the reality!

Back to the future?

Some of you may remember the Bank of Melbourne from the ‘90’s. It was a great bank and dear to many Melburnians’ hearts. Westpac bought the business, kept the status quo for a while then got rid of the brand, switching all existing branches to Westpac.
Guess what? They’re bringing it back. Apparently their research says that the Bank of Melbourne brand is fondly remembered in Victoria so the St George brand is going and we’ll have Bank of Melbourne – and Westpac of course! Read more here.


I wonder if they are bringing back the service that made us all so fond of BOM? We’ll be watching!

Who says banking competition is dead?

Well, what a difference a month makes.

In January, the talk was all about the lack of competition for, and amongst, the big banks. In the past couple of weeks there has been a plethora of new lending offers introduced by banks and non-bank lenders, large and small.

It all started on Valentine's Day with NAB's interesting marketing tactic of 'breaking up with the other banks'. If you were in a cave (or maybe just away on holidays) and you missed it, you can view some of the highlights here: http://breakup.nab.com.au/ . Apparently this strategy took 18 months to put into place, so they've clearly been working on the “breakup” for some time.

A particularly interesting concept within the strategy were the actors breaking up in restaurants, cafes, trains and trams all around Australia, wonder how many people thought it was real at the time? Have they worked it out yet? (Did you see one? What was the reaction like from people around you? We would love to hear some firsthand reports.)

The immediate reaction from the other major banks was varied. ANZ took the high road ('we didn't know we were together to start with'), Westpac kept silent; CBA took the bait though. The very next day they began offering discounts on application fees, then discounts on their discounts and finally a brand new home loan with NO HIDDEN FEES....does that mean their other loans do have hidden fees?

Since then, lenders big and small have rolled out a plethora of discounts and rebates, some offering up to 1.25% off their standard variable rate - but is that as good as another lender who offers only 1.00% off their rate? Of course it all depends on the base rate, the fees and the length of time you will have the loan.

So, if you have a home loan of $250000 or more, not in a fixed rate and haven't reviewed it for a while, now is a great time to do so. Not only are the chances that you will get a far better deal than you are on now you will probably be able to change lenders with little, if any, out of pocket costs. The best bet is, of course, to speak to us, your friendly broker. We can provide you with detailed comparisons of each lender and how their offer relates to your situation. If you want to move to a better deal, we'll make simple!