Broking bad: Who really owns your mortgage broker?
Who really owns the mortgage broker?
According to insiders, mortgage brokers may not be offering the best deal because big banks ‘own’ the majority of brokers.
Martial Peter is not tied to a bank, so he is free to expose one of the best-kept secrets in the finance industry.
“The banks control the mortgage brokers,” Peter said.
Aussie Home Loans is 80 per cent owned by the Commonwealth Bank, who also have a 21 percent share in Mortgage Choice.
The NAB outright owns 100 percent of Choice, Plan and Fast together, which is more than 30 percent of all brokers.
Mortgage broker RAMS is 100 percent owned by Westpac
“When they are going to a mortgage broker, they need to go in with an open mind,” Manager at Canstar Research Mitch Watson said.
Canstar’s Independent research shows the best home loan deal is not through any mortgage broker.
“[At] the top of the list, we have loans.com.au with their blackboard special that has an interest rate of 4.49 per cent,” Watson said.
Canstar’s top five
1. loans.com.au 4.49%
2. State Custodians 4.59%
3. Ubank 4.62%
4. Mortgage House 4.64%
5. Mortgage Australia 4.67%
“Prior to the Global Financial Crisis there was 400-odd non bank lenders, now there are only 20 of us around,” Peter said.
Phil Naylor of the Mortgage Finance Association of Australia says Mortgage brokers like Aussie have spent millions of dollars on technology ensuring loans are ranked without bias.
"I've never seen any evidence that there is any difference between a broker who is owned by a bank, or part-owned by a bank, or not owned by a bank at all,” Naylor said.
7News Investigations asked Aussie what percentage of loans is directed to its majority owner CBA.
The Commonwealth Bank did not want to disclose the information.
