No Fee for Service

With the recent Final Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and with its findings really undermining any trust we may have had in the banks, it seems clear that now more than any other time ... is the time to take radical responsibility for your own financial future.

One of the major outcomes is that the Final Report is recommending for brokers to charge a consumer fee-for-service of around $2,000 to $3,000 for credit advice and loan finance application to settlement implementation on behalf of a consumer as brokers would not be paid finance commissions directly from the banks any longer so as to cut any 'perceived ''conflict of interest''.

This, in essence, would mean that it would place a greater financial burden upon consumers and business owners as this would effectively become an additional borrowing burden as a new multi-thousand-dollar tax for consumers.  

By passing a mortgage broker or credit adviser? This won't help either... the recommendations also referred to a “lender fee” or ''bank-fee'' at a branch level alongside a consumer fee-for-service to ‘level the playing field’, so as to maintain a thriving competition amongst the banks. So either way, it will cost consumers thousands of dollars to obtain a loan whether they go directly to a bank or seek the advice of a credit adviser or broker.

These recommendations may decimate competition and access to credit, which is a very poor outcome for consumers.

These proposals have raised concerns about changes to broker pay, citing the number of investors who rely on brokers to get finance. In fact, according to the Property Investment Professionals of Australia (PIPA) 2018 Investor Sentiment Survey, more than 75% of investors secured their last investment loan through a mortgage broker, a number that has continued to increase.

Around 86% of investors said they intended to finance their next investment loan through a broker.

At Medicaid Finance we are offering a guarantee that you will not be charged a Fee-for-Service under our Medicaid Business+ subscription this represents good outcomes for medical professionals.