Media Statements

With major lenders currently raising their interest rates, the peak body representing Australia’s finance brokers is urging mortgage holders to consider the option of changing from variable to a fixed rate.

Peter White, Executive Director of the Finance Brokers Association of Australia (FBAA) says it is not surprising the big banks are raising interest rates independently of the Reserve Bank keeping official rates at an all-time low.

“We have been saying for all of 2016 that it was inevitable the banks will increase interest rates because their profit margins are being narrowed. The cost unfortunately has to be offset by the borrower.

“For the moment, bank interest rates remain attractive, so fixing your rate can be economical but it depends on the borrower’s individual circumstances,” he said.

Mr White said some fixed rates are cheaper than variable rates, and there are options to fix only a portion of the repayment.

“Consumers should be able to reassess their mortgage and be released from fixed interest rates at times of rising rates however many banks still attempt to charge these fees.”

His advice to borrowers is to consult their FBAA finance broker if they are unsure about whether their situation warrants a re-evaluation of their mortgage.

“Brokers are experts and provide the advice most suitable to the needs of a mortgage holder.”

Media Contacts: Ben Dobson – 0434 791 084 // Barbara Gorogh – 0435 909 608

Industry veterans and rising stars of the broking industry were honoured at the Finance Brokers Association of Australia (FBAA) Industry Awards held during a glittering Gala Dinner at Movie World last week.

The inaugural Awards of Supremacy recognised the finance industry professionals who excelled during 2016 for being leaders in broking, mentoring, mortgages, motor and commercial asset finance.

FBAA Executive Director Peter White paid tribute to the winners saying their outstanding achievements play a big role in helping elevate the broking industry’s profile.

“The individual award recipients all made their mark during the year and were fully deserved of recognition in front of their peers and colleagues.”

George Samios from Brisbane-based MADD Loans picked up two awards – Queensland’s Finance Broker of the Year as well as the coveted FBAA National Finance Broker of the Year.

“The future of broking is in good hands when a young man under 30 can be as successful as George has been. MADD Loans has grown into one of the best broking businesses nationwide,” Mr White said.

The 28-year-old who began his broking career four years ago, said both awards were humbling, adding that age is no barrier to success if you keep your focus on the customer.

“That’s the difference a young person has. You have energy, confidence, determination, and a will to satisfy the client. All you need are good mentors which the FBAA has in abundance among its members,” Mr Samios said.

Steve Andrews from First Choice Finance Group was awarded Mentor of the Year while a special award for the Business Development Manager (BDM) was won by Suncorp’s Dino Pacella, who the FBAA’s external award judges singled out for attention for his unrelenting work in launching the industry-first National Finance Brokers Day.

“Dino’s vision and commitment to providing a nationwide voice for brokers was unshakeable and he was a deserved recipient of the prestigious BDM Award,” Mr White said.

Full list of winners:

Qld Finance Broker of the Year – George Samios, Madd Loans.

NSW/ACT Finance Broker of the Year – Vishal Gupta, Unique Finance Services Pty Ltd.

Vic/Tas Finance Broker of the Year – Kristy Dunphy, Up Loans.

SA Finance Broker of the Year – Lynton McLean, Imperial Finance.

WA Finance Broker of the Year – Tony Carter, Brokerage WA

Plant & Equipment Finance Broker of the Year – Peter Lovick, SMA Finance Launceston.

Mentor of the Year – Steve Andrews, First Choice Finance Group.

Commercial Property Finance Broker of the Year – Jayden Vecchio, Red & Co. Finance.

Business Development Manager of the Year – Dino Pacella, Suncorp Bank.

FBAA National Finance Broker of the Year – George Samios, Madd Loans.

Media Contact: Ben Dobson – 0434 791 084

The broking industry’s leading professional member-based association continues to set new benchmarks with a record number of finance professionals attending the Finance Brokers Association of Australia (FBAA) annual conference in late November.

The event at Sea World Resort had as its 2016 theme, ‘Bigger, Better and Stronger’ and the conference more than lived up to its title with nearly 1,000 brokers and finance professionals participating.

FBAA Executive Director Peter White said the turn-out greatly exceeded expectations with the FBAA annual conference clearly now the industry’s showcase event.

“It is hard to believe that when we held our first conference in 2012 there was limited support but in just four short years, to now have around 1,000 industry representatives attending is astonishing.

“The feedback, from our guest speakers to our extensive Exhibition Expo, has been exceptional and has set the standard in finance broking conferencing,” he said.

Attendees also heard from a senior spokesperson from the Australian Securities and Investments Commission (ASIC) who provided an update on the ongoing review into broking remunerations.

“To have Chris Green as a keynote speaker was extremely beneficial. He offered insights into the challenges currently facing the industry as ASIC continues its broker commissions probe.

“It was also heartening to hear ASIC acknowledge its solid relationship with the FBAA as we continue working together to provide the best outcome for brokers,” Mr White said.

The conference also heard details of a new strategic alliance between the FBAA and the Small Business Association of Australia (SBAA) which Mr White explained will bring numerous benefits to both associations.

“It was an ideal platform to make this exciting announcement about the partnership which will give the 250,000 plus SBAA members a deeper understanding of how brokers can assist in maximising their business potential.”

The conference concluded on a high note with the inaugural FBAA industry member awards which were held in conjunction with the Christmas in New York gala dinner extravaganza at Movie World, complete with snow and Santa’s arrival in style.

Media Contact: Ben Dobson – 0434 791 084

The Finance Brokers Association of Australia (FBAA) has questioned the results of a survey released by the Mortgage and Finance Association of Australia (MFAA) and accused the association of letting brokers down.

FBAA Executive Director Peter White said a report commissioned by the MFAA that asked about fee for service undermined the entire broking sector and sent mixed messages to regulators and legislators.

“Firstly the survey is not credible because the question asked was in their own words ‘hypothetical’ and I believe misleading.

“People can say anything to a survey question but when it comes to the crunch I question whether people will be willing to pay, particularly if it meant higher interest rates, less competition for banks and other factors that would result from such a shift.”

He also said that the FBAA had researched the way brokers are paid across the world and had confirmed that the current commission structure was consistent with global standards – in some cases Australian brokers are paid less – but remain viable and competitive.

Mr White also disagreed with the information being released by the MFAA about customer loyalty to banks, calling the survey and subsequent publicity bizarre.

“Let me make this point clear – as an industry association the FBAA has never publicly criticised the MFAA, because we are all in the same industry working towards the same goals, but in this case we cannot remain silent.

“That the MFAA would not only decide to ask these ridiculous questions, but then release flawed results to the Australian media that cuts across the good work we and the rest of the industry have been doing with regulators and MPs, is beyond comprehension.

He said the leadership of the MFAA needs to take a “good look at their priorities” if it wants to retain the goodwill of their members.

“Industry associations exist to advocate for our members and work in their best interest, not smack them across the mouth, which this survey does.”

Media Contact: Lyall Mercer – 0413 749 830

Finance brokers in Tasmania will be able to share their experiences and challenges and discuss regulatory and marketplace changes at a regional summit in Launceston on November 3.

Hosted by the Finance Brokers Association of Australia (FBAA), the half-day summit at the Hotel Grand Chancellor will feature FBAA Executive Director and industry veteran Peter White, who will provide an update on his regular meetings with senior federal MPs and regulators.

Tasmanian President Brendon Kurtz said the association recognised the importance of supporting brokers in all areas across Australia, and was committed to resourcing Tasmania.

“Engagement like this is vital for professional development and for brokers in this state to not only connect with other industry participants, but to obtain important information that will help them in practical ways.”

He said it was also an opportunity for members to provide feedback and share what they would like to see the FBAA do in Tasmania in the future.

“This will be very beneficial and I’d like to see all industry professionals be a part of this day – not only brokers but bankers and others.”

More information about the summit can be found on FBAA’s website.

Media Contact: Lyall Mercer – 0413 749 830

Interest rates may be at record lows but borrowers must remember this should not be the deciding factor in choosing the best mortgage product, according to the industry’s peak body for finance brokers.

Peter White from the Finance Brokers Association of Australia says there has been much talk about cheap loan money but wants to remind borrowers to carefully assess their current and future financial needs.

“The banks are competing to offer the cheapest interest rate but it’s a case of buyer beware because responsible lending is not done through bidding, auction or search engine sites,” he warned. 

The 37-year finance industry veteran said professional guidance from a finance broker is essential to ensure the loan is “not unsuitable” to the customer, not just for now but when circumstances change.”

“You may be on a lower variable rate, but in some cases it may be prudent to fix part of your mortgage. This is when the right advice is essential.

“Brokers are accredited professionals who know the market inside out and possess the experience to ascertain a loan that meets – if not exceeds – your needs, which in many cases does not necessarily mean the cheapest.

“In fact, finance brokers are obligated through legislation to adhere to responsible lending practices” he explained.

 Mr White said finance broking is one of the country’s most regulated finance sectors, offering full transparency about the loan product as well as fees and charges.

The peak body representing the nation’s finance brokers wants banks to start practicing what they preach and is backing Labor’s calls for a royal commission into the sector.

Peter White from the Finance Brokers Association of Australia says it isn’t enough for the banks to explain their actions only once a year, and dismissed a move by leading executives who have taken an oath to lift ethical standards in the industry.

“How ironic for bankers to sign an oath promising to lift values and ethics when the spotlight is now on them for filling their pockets and failing to pass on the full interest rate cuts.”

The Banking and Finance Oath has now been signed by more than a thousand bankers nationwide including the heads of ANZ and National Australia Bank.

“If they want to show they are ethical and hold values then actions must speak louder than words,” said Mr White, who challenged the major banks and lenders to pass on the full interest rate cuts to consumers.

“CEOs and senior managers are pocketing enormous bonus payments for reaching billion-dollar profit targets but where is the reduction in credit card rates which are at an all-time high?”

The industry veteran claims the banking fraternity is deluded if they feel this type of public relations stunt will keep their customers satisfied.

“A need for an oath to uphold better values simply tells me and the community that banks are admitting they haven’t acted ethically in the past.”

“Let’s put this bill to Parliament and bring on a royal commission as this behaviour is offensive to borrowers and depositors across Australia,” said Mr White.

Media Contact: Ben Dobson – 0434 791 084

A revised finance commission structure for dealers in the motor industry seems likely to take effect in late 2017 according to the Finance Brokers Association of Australia (FBAA).

The FBAA’s Peter White has met with the Australian Securities and Investments Commission (ASIC) to discuss the current review into motor dealer flex commissions after concerns that consumers are being charged excessively high interest rates due to steep loan commissions being added into borrowings.

“The FBAA and ASIC have been in continual contact on motor finance issues since the point of sale (POS) exemptions were first brought in from 2010, and we have held National Dealer Roadshows on this and other matters including the FBAA’s multiple submissions to ASIC on the controversial use of flex commissions.”

“Following on from our recommendations to the regulator, a likely outcome is car dealers and financiers may be able to discount the interest rate but must also reduce their commissions.” 

Mr White said while any ASIC ruling will need to be passed by Parliament, flex commissions will likely remain in the interim. However by the end of 2017 the ability to increase interest rates by adding a higher commission structure will most likely be prohibited.

The FBAA has kept the industry up to date on these matters through the motor finance roadshows, and will continue to monitor the situation.

He also revealed that further investigations and reviews are being held into the related consumer credit insurance sector, with hopes high that fair and transparent commission structures for brokers will be one of the many positive outcomes.

“I also made mention of the FBAA’s long-held firm position on the removal of POS exemptions to motor dealers and although it appears that the Regulator may support such views this is not an ASIC matter and we will continue this ongoing conversation with Government.”

The industry veteran is hopeful ASIC will be supportive of its position as the FBAA strives to ensure an even and transparent market playing field for brokers, financiers and dealerships so that we achieve positive consumer outcomes.