Whether you’re a borrower with a big bank or a small credit union, or looking to get into the market, the Royal Commission proposals will affect you negatively.

Your action is very much needed to protect your interests as a borrower.

There’s a clever subterfuge in play at the moment. What the banks and some politicians would like you to believe is that the only people impacted negatively will be mortgage brokers. This sounds plausible but couldn’t be further from the truth.

Unfortunately the real losers will be every borrower and prospective borrower in Australia. That means you, your kids, your family and friends.

If you’re short on time, but already know you want to do something, please scroll straight to the bottom of this blog for how you can help (it won’t take more than 5 minutes of your time).

I’ve tried not to write ‘War and Peace’ here, but there is so much to share as the issues are deep and complex. Here  are a couple of points that I hope will encourage you to join the fight to stop this madness from becoming law. If you want more detail and background, I’ll be posting some more detailed articles on my blog Finance Straight Talk  and on social media in the coming days.

Here are the ugly bits:

  • The ultimate proposal is that not only do the banks stop paying mortgage brokers for the service that is currently free to you, Commissioner Hayne is suggesting that these be replaced by a fee paid by you. He’s also recommended that the banks also charge you an equivalent fee if you go direct “to protect competition”.
  • A current homeowner with a loan of $400 000 could end up being gouged an extra 1 to 1.2% on their rate before it becomes economically viable to refinance. That’s $4 400 a year!
  • If you are able to refinance to a lower rate, the cost of doing so would go from $950 to somewhere between $4 000 to $5 000. Even worse, if you don’t have the cash to pay the fees and have to add them to the loan (assuming you have the equity to do this),  you’ll end up paying the bank an extra $8 000 to $ 9 000 in interest over the loan term.
  • first homebuyer will need to save an extra $3 000 to $4 000 before they can get into the market. If they don’t have this cash and, assuming lenders mortgage insurers allow this fee to be added to the loan, the pain isn’t over. This would mean approximately $1 200 more in Lender’s mortgage insurance premiums, plus extra interest of around $10 000 for the life of the loan on the fees and the extra LMI premium. That’s puts a young homebuyer $14 000 out of pocket and the mortgage insurers and banks pocketing the extra profits.

In each scenario above the bank wins and the consumer loses, by thousands of dollars.

If you believe in the benefits of having a broker work for your interests and not the banks, and you want to keep your interest and borrowing costs to a minimum, then please take action:

There are a few simple things you can do.

    1. Please visit https://www.brokerbehindyou.com.au/
    2. Sign the formal industry petition. We’re aiming for 1 million signatures so that whichever side of government is legislating, they can’t ignore these issues.
    3. Email your local member – there is an easy tool that will help you select your MP and will prepare a pre-drafted email (which you can edit if you chose) and allow you to email it direct from the site.
    4. Sign the public petition at  https://www.change.org/p/federal-treasurer-josh-frydenberg-save-the-mortgage-broking-industry?

If you’d like to read about more about all of this, keep an eye on my Facebook Page and LinkedIn over the coming days.

I intend to stay in this fight, because I love what I do. Helping you, my clients, protecting you from the banks and seeing you flourish financially is my passion.

I’m adaptable and will do everything I can to restructure my business to weather whatever changes eventuate. I know that now more than ever borrowers need someone in their corner. I hate the idea though that this should be at a cost to you. And it doesn’t have to be, but I need your support to fight to protect us all.

For now, it is absolutely business as usual. Thank you for your support in this fight for all our interests.

Warm regards

Tanya

What our customers have to say:

Adam, Brisbane

I wish there were more people like Tanya out there. She is such a lovely person, she knows her industry and she can explain finance in terms that anyone can understand. She is very professional, and approachable. I have already recommended Tanya to a work colleague, and they purchased their new home also finding Tanya a breath of fresh air. Thanks again Tanya for your help, and I will always use your services for any other investment opportunities that may arise.

Adam, Brisbane

Rachel, Sunshine Coast

No task was ever too great for you to handle. I found your service was extremely prompt and no query was ever too simple nor difficult for you to take on. Tanya, I felt as though I had trust in you from the very first phone call and you certainly met all of my expectations and more in a professional and friendly manner. Thank you.

Tanya, your interpersonal skills are second to none. Apart from being exceptionally savvy when it comes to your role, I found you incredibly approachable. Your happy disposition just made the whole experience of buying a property a joy. Thank you.

Rachel, Sunshine Coast

Pol, Brisbane

Your solution also took a lot more into consideration than just our home loan. You also answered all our many, many questions simply and quickly. You have an ability to explain intricate financial details in 'plain speak'. Your overall easy going personality and professionalism was refreshing along with honesty and frankness which was also appreciated.

Pol, Brisbane

Trish, Brisbane

It's difficult to narrow down what impressed me most - you provide an excellent service. I think one of the greatest things was that you genuinely cared about the result. You worked so hard and so efficiently to ensure that I was able to move forward in the process of purchasing my first home.

Trish, Brisbane

Shayn, Brisbane

Considering the complexity of the loan we have applied for Tanya has left me with a sense of assurance that our best interests were always first and foremost. Her explanation of how the whole process works was always presented clearly and confidently. She was always prepared to answer any questions we put forward and never hesitated in incorporating her own personal experience in any of her responses. We will continue to keep in touch with Tanya and when next we require loan assistance, Tanya will be number one on our list.

Shayn, Brisbane

Graham, Brisbane

Tanya du Preez has given me the advice that I couldn't get from the banks. Tanya advised us exactly how to achieve our investment goals for the next 5 years. If you are thinking about investing, your first investment should be 30 mins with Tanya. It will cost you nothing and could mean you retire early.

Graham, Brisbane

Sally, Brisbane

All parts of the process were explained simply and clearly so that I could understand what was going on as I have never applied for a loan before so this was all new territory for me. Thanks for all your help Tanya we were so glad to have your help rather than having to deal with a bank directly; much more personal and caring service.

Sally, Brisbane

Jennifer, Brisbane

I really appreciate your flexibility to meet with me at my convenience, advice based on knowledge and experience, referrals to other products and services and general sense of 'relief' that my future financial state is in good hands.

The whole team is both professional and friendly - a great wealth of experience. The service greatly exceeded my expectations and I gladly recommend your services to others.

Jennifer, Brisbane

David, Brisbane

All queries were promptly answered. Great staff correspondence, we were always able to access someone to raise concerns. We were impressed with the attention to details. Tanya really listens and takes notes of the type of people we are and what loan setup would suite us. The services you referred us to have impressed us as well. You are very approachable and never made us feel silly with our questions.

Knowing you & your team are looking after our lending needs gives us a peace of mind and has made the process almost stress free.

David, Brisbane

Brian, Sunshine Coast

Tanya has skilfully and successfully managed the complexities of refinancing our business and property affairs. This crucial and timely financial manoeuvre has involved a detailed assessment and understanding our current business operation and financial needs. In addition, Tanya has worked with us in planning our financial strategies.

Tanya has provided us with a high standard of service and advice that has saved our companies significant amounts of money and continues to expand our knowledge on how to operate in the new and ever changing banking environment so that it best suit our business and property portfolio's needs.

Brian, Sunshine Coast