Bank's ad campaign stirs up brokers
Wednesday 5 May 2004
Bank of New Zealand’s aggressive anti-mortgage broker advertising campaign has clearly stirred up some strong feelings in the broker market, with some going as far as saying it is misleading and dishonest.
By The LandlordThe bank’s campaign has run under the logo: "We’ve cut out brokers to give you a great home loan deal".
"It’s inherently dishonest for the BNZ to say that, because they’re not paying brokers, they can offer that rate” Mortgage People managing director Carey Brunel says. “If that was the case, it should be 0.6 or more percentage points lower."
Most banks pay upfront commissions between 0.6% and 0.8% of the total loan amount and many pay on-going trailer commissions on top of that.
"They’re putting themselves up as a pillar of honesty in the community but they’re perpetuating a lie against the broking industry," Brunel says.
Miranda Caird, managing director of Mortgage Choice, has a similar view. "It’s misleading the public. How do each of those employees get paid? Everything comes out of margins.
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