Mortgage adviser pays more than $3,000 to end complaint

@ FinancialDigitBasher – every time you charge a client a fee on top of your brokerage earned you are giving the banks just the excuse they need to reduce our commissions – thanks! What don't you get?

why did the so-called Judy go unconditional that is her choose

Who in their right mind would go unconditional on a sale and purchase agreement without confirming “unconditional “finance first, any adviser telling clients to go unconditional on a sale without confirming unconditional finance first deserves to be at a tribunal, any professional adviser knows that clients that can’t actually settle on an unconditional sale can forfeit their deposit and be charged penalty interest and worst-case scenario sued. I’m also guessing Judy did not seek legal advice before going unconditional on a sale with out finance as any decent conveyancing solicitor would advise her not to do so until she had unconditional finance. Advisers with a cavalier “she’ll be right” sure you can go unconditional on a sale without unconditional finance! attitude should disembark from the industry as this is not a game we are playing; people rely on us for professional advice and direction.

@valkyrie6 - well said. The 2nd broker also seems to think it’s ok to be charging a client a $2,000 "urgent application fee" (sigh) on top of the commission that they earnt from her mortgage approval. I guess if the client agrees upfront to this additional cost being incurred to secure finance its ok but still not a great look for our industry taking advantage of someone in a vulnerable position.

Thanks Amused. When I next get a stressed out potential new client looking for someone to drop tools and assist at no cost or potential return I will recommend they get in touch with you. Awesome.

@Laurie - any mortgage adviser who thinks that whacking a new client with a $2,000 “urgent application fee” is ok just because they are busy needs to have a good hard look at whether they should be in this industry. You either have the capacity to act for a client or you don’t. No one is forcing you to drop everything to act for someone who is needing their finance done urgently. Charging a fee on top of the commission you will already earn from the lender been approached is just plain greedy. Also if all advisers did this then what do you think would happen to the commission levels that banks currently pay to mortgage brokers? The best thing that this industry has going for it currently is that we are a free service to clients with our time being reimbursed by the lenders themselves. If you think that a fee for service model would actually work for mortgage brokers you’re just doing exactly what the banks would like to have happen to our industry. CBA in Australia have been very vocal about this. Future bank ad on TV reads “come see a FREE home loan specialist at one of our local branches for your home loan approval”. Am getting a bit tired of people in this industry who are unable or incapable of looking at the “big picture”. P.S. The dispute resolution scheme IFSO is running an Online Workshop soon on 28th October titled “Giving a damn - an ethics conversation”. Key themes of the workshop are ethical expectations and discretionary judgement based on values. Let me know if you’d like the link?

Amused is the armchair critic who gives his opinion but doesn't even know or understand an individual proposal. Mr Smug over here must've missed his calling at the parking enforcement agency.

@ Amused - taking advantage or being commercially minded...? I agree with FinancialDigitBasher, knowing and understanding are key. Skills all great mortgage advisers need but sadly, some lack.

@Amused who said the adviser got paid commission?

@ Amused - P.S. Bank bashing (e.g. as per comments about Westpac in another thread) is more likely to result in a commission haircut. Or in the termination of a lender accreditation. Again, for me, being commercially minded is really important to ensure future personal and industry success.