There are currently some working groups, both here and in Australia, who are looking to ensure that advice relating to financial products and services is fair and transparent, no matter who provides it.

One of these investigations has been into the practices of banks in Australia (and NZ, by virtue of the fact our biggest banks are Australian owned), and its findings were released a couple of weeks ago. One of the recommendations related to Mortgage Brokers and their commission structure, potentially looking to take away the ability to offer services at no-cost to the borrower when lending from a trading bank is arranged. The problem with this – if implemented fully – could be that it would cost to get your lending through a Broker but not directly with a bank. This would result in a reduction in the choice that a borrower had in terms of advice they had access to (at no cost).

Since these recommendations were released in Australia there has be a ground swell of support for Brokers from everyone from advocacy groups to the Prime Minister. The fact is that Brokers do not work for the banks, but they do provide a great deal of business to the banks. More importantly for the consumer they provide a specialist service to help achieve financial goals and - being regulated and controlled - an invaluable source of choice, advice and support.

Many years ago, I worked for a number of banks, both local and international. What was common to every one of those banks was that they had their own, specific, credit policies. When I wanted to build a home, I went to a Broker because he had an overview of all funding options, not just the bank I worked for at the time. It turned out none of the trading banks could finance my deal and he found me funding through another source. That one deal started me on the road to financial success and without him that would not have happened.

That Broker changed the way I looked at lending and he went on to become my friend and my Business Partner.

The point is that everyone deserves as many options as possible. As a Mortgage Broker, I expect no favouritism from any working group nor advantages over any lender. What I do expect is that borrowers should continue to have the choice, in a regulated environment, and be able to use a Broker to go to a bank without being disadvantaged. Giving borrowers the right to choose, and as many options as possible, should be paramount.