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Fierce lender competition has delivered brokers better commissions, turnaround times and sales support, according to Commonwealth Bank.
General manager of home loans Clive van Horen said industry veterans regarded today’s mortgage market as the most competitive in years if not decades.
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“You just need to look at the number of lenders who are pushing new business really hard and presenting amazing offers to customers,” he told The Adviser.
“You just need to look at the way the broker channel as a whole is growing. The level of choice that customers have today far exceeds what they’ve had in previous years.”
Mr van Horen said that had benefited brokers as well as borrowers.
“The more competitive it is, the more benefit to the broker, because it means all the lenders are working harder to support the brokers and ultimately their customers, whether that’s through traditional sales support, faster turnaround times and credit, commissions and all the different levers that are used,” he said.
“We’re working really hard on all those fronts to make sure we’re getting better every day, and if you’re a broker that puts you in a good position because you know that there are a lot of people competing for that customer’s business.”
Commonwealth Bank yesterday cut its five-year fixed rate to an all-time low of 4.99 per cent. Mr van Horen wouldn’t be drawn on whether brokers could expect more rate cuts from the bank, although he did tell The Adviser that he was “under no illusion” the market would stand still.
“I would never say yes or no to that because it really depends on how the market moves, it depends on what happens to funding costs, it depends on what the customer response is and what competitors do,” he said.
