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ISCOVER
Staff Reporter
CHOICE’s One Big Switch mortgage campaign has not been well thought out and will not drive greater market competition, one industry stakeholder has claimed.
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Choice Aggregation Services chief executive officer Stephen Moore said the best way for borrowers to get a better deal on their mortgage was to consult with a mortgage broker.
“I'm concerned that this ‘One Big Switch’ idea has not been thought through at all, and might end up dashing the hopes of some people who have been promised the ‘cheapest loan’,” he said.
“The commission and pricing structure for this promotion has not been explained sufficiently and the bulk-buying proposal fails to understand how loans are sourced and provided to consumers.
“Any good broker knows that mortgage pricing changes in line with market conditions – there are no guarantees that the cheapest product on the market one day will be the cheapest the next.”
Mr Moore said people who had signed up or were considering signing up to the ‘One Big Switch’ / CHOICE proposal should think again.
“I say to the people who have signed on to ‘One Big Switch’, or are thinking about it: see a broker today,” Mr Moore said.
“Brokers can guide customers on price, quality and service. Brokers will talk with customers about their individual circumstances and find the right loan and structure for that individual. And you know the broker will be there for the long haul. We can’t say the same about ‘One Big Switch’.”
