The Adviser aims to highlight the experiences of borrowers through the retail and third-party channels through a consumer survey launched today.
As the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry comes to a close, The Adviser has commissioned Momentum Intelligence to produce a white paper to better inform legislators about the intricacies of third-party distribution.
The cornerstone of the report will be a major survey of borrowers to understand the decisions behind why they chose their mortgage provider, what their sentiment and understanding was around commission and, importantly, what would influence their decision when choosing which distribution channel they would use for a home loan in the future.
According to Alex Whitlock, director - mortgages at Momentum Media, a key question will be around borrower sentiment towards paying a fee for service and how this could impact their choice to use a broker.
“There has been great speculation around conflicted remuneration in the third-party channel. For this discussion to be complete, it is critical that we consider the borrower, who ultimately will be most affected should the cost structure in accessing a loan change.
“It is essential that borrowers have access to the widest possible range of lenders and products, ensuring robust competition in the mortgage market. This will ensure that mortgages are ultimately offered at the lowest sustainable margin by lenders.
“If we end up being forced to use the lender with the biggest retail network, history tells us that the cost to borrow will increase for the borrower.
The survey will be promoted to borrowers across relevant Momentum Media brands including Smart Property Investment and Nest Egg. It will also be made available to brokers to share with their clients to ensure the largest possible sample market.
You can share The Adviser’s survey available to your clients by following the steps outlined here.