Mortgage brokers' commissions get close eye from banks
Tuesday 7 December 2004
Some of the big banks are putting mortgage brokers' commissions under scrutiny as they continue to battle for bigger shares in the home loan market.
By The LandlordANZ National Bank chief operating officer Steven Fyfe said home loan margins had fallen 1/3 in the past five years, but brokers fees had not followed suit.
"There has to be a correlation. Brokers are expecting it," he said, noting the bank was in talks with brokers about bring their commissions into line with margins.
Mr Fyfe's comments come during a price war in the two-year fixed home loan market.
BNZ launched an "unbeatable" campaign on October 11 and says it has lower costs than rivals because it stopped using mortgage brokers and paying their commissions in May 2003.
Broker costs can be nearly 1 per cent of total loan values.
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