'Paid the Same' commission rate commitment

Australia’s independently-owned mortgage consultant franchise network, Mortgage Choice is re-affirming its commitment to its ‘paid the same’ commission rate policy for home loans arranged by its franchisees, to re-iterate the company’s strong consumer advocacy stance.

This comes at a time when mortgage broker commissions and the move to a ‘fee for service’ model for financial planners are attracting increasing attention.

The head office of the mortgage broker franchise group pays franchisees the same commission rate for the home loans they write, regardless of the rate paid by the lender selected by a new customer - and has been doing so for most of its 17-year history.

According to Michael Russell, CEO of the mortgage broker franchise network, in continuing its commitment to such a policy, “Mortgage Choice stands apart by cementing its loyalty to providing customers with a service that is not swayed by one lender over another due to commission payments. We are happy to be different and will staunchly hold the line in this respect, to do what is right for our customers’ needs.”

“With so much talk at present focusing on commissions, we thought it timely to remind and reassure our customers, investors, analysts and other interested parties that Mortgage Choice continues to adhere to a ‘paid the same’ policy for its home loan services.

“Varying commissions paid to financial services providers can encourage bias. Our franchise owners’ dedication to being ‘paid the same’ for sourcing home loans for Australian borrowers is indelibly stamped into the way we do business.

“It is also a strong drawcard for Mortgage Choice customers. It provides us with a fantastic, tangible point of difference.”

A mortgage franchise owner of 10 years, Ben Herden from Gymea in Sydney’s south, has noticed a large difference in his lead conversion rate since he incorporated the company’s ‘paid the same’ message into his recently-improved sales process.

“I find it an invaluable tool for attracting new customers to my business. It negates the need for ‘fee for service’ and makes people aware of the purity of Mortgage Choice’s proposition,” Ben said.

“My team and I draw attention to our ‘paid the same’ policy during every interview, and when a potential customer is broker shopping and asks why they should use Mortgage Choice over another broker, we’ll get the business every time.

“I like that we even formalise the message in writing via our Customer Charter, which is handed to every customer. Our payment policy puts Mortgage Choice ahead of the pack in terms of commitment to the essence of being a broker, which is all about finding each customer the most suitable loan for their circumstances. It is an essential part of our value set.”

Michael Russell said, “The Mortgage Choice ‘paid the same’ policy for home loans is cultural, it’s part of our psyche. We are proud of retaining such a strong consumer advocacy stance.”