Turning a negative into a positive
It’s time to move on, Homeloans says
On the eve of the ban on exit fees becoming effective, Homeloans’ general manager third party sales, Tony Carn has called on the broking fraternity to put the negativity behind them and start focusing on the benefits the ban can bring for their businesses and clients.
“The autopsy continues to be performed on this legislative change, but despite many last ditch efforts to overturn the ban, we have to accept it’s now law and look ahead,” says Tony Carn, Homeloans’ general manager third party distribution.
“In the past, deferred establishment fees have been a huge psychological barrier for clients – particularly since the GFC. But with the introduction of the NCCP, exit fees have been propelled into the spotlight, which has made it easier for brokers to recommend those products which don’t have such fees.
“Now with the ban a reality, we need to think of this as a positive and how it will help enhance rather than destroy competition. It’s just levelled the playing field for non banks and their larger competitors.”
According to Carn, now is also an opportune time for brokers to “vote with their feet” over commission cuts and the high level of new business going to large lenders.
“Ever since cuts to upfront and trailing commissions started to permeate through the broking industry, there has been enormous concern about the volume of business the majors are getting,” Carn says. “So now the DEF bans are concrete, it’s a great opportunity for brokers to show their dissatisfaction.
“Apart from being able to offer a wide range of home loans which no longer have a DEF, brokers also have the opportunity to take greater control of their businesses by providing independently labelled products – and without the risk of channel conflict in the future.”
In light of the 1 July change, Homeloans has begun piloting a new preferred service platform – the Elite Broker Circle. “We recognise we are well positioned to bring the value of superior service to the forefront with key broker partners,” Carn explains.
The Elite Broker Circle will provide a range of benefits to help selected brokers better service their clients. It will include greater control around the ordering of valuations and credit checks, provision of a designated credit manager, in addition to a range of solutions tailored to the broker’s individual business needs.
“We are confident this program will be well received with key broker partners and look forward to expanding it in the near future,” adds Carn.