Equitas Mortgage & Finance in Perth, Western Australia | Financial service

Equitas Mortgage & Finance

Locality: Perth, Western Australia

Phone: +61 420 655 533

Address: Level 1/76 Mill Point Rd 6151 Perth, WA, Australia

Website: https://www.equitasfinance.com.au/

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• Mortgage brokers

12.01.2022 The 50+ banks & lenders we have access to on our panel

10.01.2022 As some of you may be aware, there has been a lot of controversy surrounding the royal commission and the poor misconduct of the banks. It evidently seems that some of the banks are using brokers as scapegoats and twisting the commission in their favour, to demise brokers and maximize their profits. Our industry is under fire and anyone who values the service of what a broker does, i encourage you to read the below to be made aware of this. David Ham - "Yesterday the CBA st...rongly proposed to the Royal Commission that all home loan borrowers be legally required to pay $2,300 to Mortgage Brokers every time they want a home loan. The bank wont pay the broker as they do now, instead you will. Over the past 30 years, whether or not you have personally used a Mortgage Broker, by providing competition and promoting cheaper lenders, the Mortgage Broking industry has halved the profit margins of the Big 4 Banks, as this graph shows. The outcome of interest rates returning to the pre-broker levels will be about $8,000 per year on an average home loan. So if you have a mortgage your repayments will go up, if you are a tenant your rent will go up. The Big 4 regained some profits during the GFC when they were approved by Labor to buy the smaller lenders such as St George Bank, Aussie, Rams and BankWest but the popularity of brokers again pushed their profit margins (that you pay) back down. Currently around 53% of borrowers use a broker and around 65% of first home buyers do. No one has to use a broker, they choose to because it suits them. Every year more borrowers choose a broker over their bank. Yet the Royal Commission is being told by the CBA and Westpac that brokers are bad for borrowers. No, but we are just bad for bank profits. Why would more and more borrowers freely choose a broker if it wasnt in their best interests? If this happens it will mean borrowers will be forced back to their bank manager and brokers wont be viable anymore. Then the Big 4 will be able to restore their profit margins to what they had before brokers. That means higher interest rates for everyone. The only thing that keeps the banks even slightly honest is fair competition. They are trying to trick the Royal Commission into getting rid of that competition for them. If this happens, the outcome of the Royal Commission will be the complete opposite of what was meant to happen. More power and less competition for the Big 4 Banks and higher profits at all our expense. The banks have already raised interest rates and reduced peoples borrowing capacity, using the Royal Commission as their excuse. It is lower income families and first home buyers who will be most hurt by this. At this stage the Liberals have shown they understand this blatant attempt at profiteering by the banks and to twist the Royal Commission into their favour but Labor does not.