MOC (ASX) Mortgage Choice (MOC) Time to buy ?

Originally posted by Tarvold: ↑

https://amp.news.com.au/finance/business/banking/mortgage-brokers-accused-of-scaremongering-over-banking-inquirys-commission-ban/news-story/cb19a189997921d5935427e085265e17

This article says it all

'When you go to a broker it’s because you want advice on how to compare loans and choose the one that’s best for you, but the way the industry is structured at the moment, that’s not what many consumers get,” Mr Kirkland said.'

'The securities watchdog has noted that loans through mortgage brokers, which make up around 60 per cent of the total, typically involve higher leverage, are more often interest-only and are more likely to slip into default."

“The current arrangements create incentives that influence which lender the broker recommends, which loan product they recommend, how much they say you should borrow, and those recommendations often may not be what’s best for you.”

'“We have seen commissions abolished in other countries like the Netherlands and it has worked well and improved outcomes for consumers there,” said Consumer Action Law Centre policy director Katherine Temple.'

Consumer groups are supportive of the recommendations, they have no vested interest in the outcome only what is in the best interest if consumers. Unlike the Broker industry.

Expand

'The securities watchdog has noted that loans through mortgage brokers, which make up around 60 per cent of the total, typically involve higher leverage, are more often interest-only and are more likely to slip into default."

Have you considered;
- Borrowers in more borderline, challenging, or complex circumstances would be more likely to use brokers than those who have relatively simple requirements who would be more likely to go direct to lenders.
- Investor borrowers, for example, would be more likely to use a broker. And those borrowers would more likely prefer interest only loans, for the tax related reasons that anyone who knows a thing or 2 about investment properties would know.
- Investor borrowers and those with more complex situations would likely have a greater probability of default than low leverage simple borrowers.
- First home buyers are more likely to use a broker than going direct, and those applicants usually borrower a greater LVR.
It's easy to jump to conclusions but if you can apply some logic, you might surprise yourself...

Oh and I'm quite sure Katherine Temple is an expert on the Netherlands market......really...? And..... We are going to use the Netherlands as a model to follow???? Why.....?