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Jessica Darnbrough
FBAA president Peter White has weighed into the fee for service debate, stating that all brokers should charge for their advice.
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Mr White told Market Focus that fee for service already exists in the market place and is the way of the future.
Brokers that are not incorporating a fee into their business model run the risk of not being properly remunerated for their services.
“I think it is time to embrace fee for service. With licensing and regulation, we are able to show consumers how professional the mortgage broking industry has become. If consumers see value in the services brokers provide, they will not be averse to paying a fee,” he said.
Mr White said he understood the widely held broker concern that introducing a fee for service could encourage the banks the reduce commissions.
“The reality is the banks are already reducing commissions. We have seen some of our majors cut trail and upfront in the last few months alone. And this is a trend that is set to continue in the future.
“What brokers need to understand is that a bank only offers one small suite of product options. Brokers, on the other hand, offer a range of products as well as sound and reliable mortgage advice – and that is invaluable.”
