CBA swallow Aussie - thoughts?

Aaron_C said:
See: http://www.theage.com.au/business/b...trol-of-aussie-home-loans-20121218-2bka6.html

What do the other brokers reckon of this latest move by CBA? Do they pay more commissions to Aussie brokers than others (or will do so in the future)? To be honest I don't put that many loans to CBA (never really trusted them, seen them take too many loans from other brokers with channel clashes). Interested to see others' thoughts.
Click to expand...

not a whole lot diff to NABs Choice, plan and Fast acqusition a while back.

Just another distribution channel.

ta

rolf
 
I am with Aaron don't do that much thru CBA as i dont trust them.

Whilst Advantedge pay Fast / Choice / Plan Brokers 0.7% upfront Fast waive the Aggregation percentage for an Advantedge deal.

Effective Jan 1 they are also waiving the aggregation fee on all lenders where 15% of your monthly business is done thru Advantedge. That means 8.5 out of 10 deals can be done elsewhere.
 
Qlds007 said:
I am with Aaron don't do that much thru CBA as i dont trust them.

Whilst Advantedge pay Fast / Choice / Plan Brokers 0.7% upfront Fast waive the Aggregation percentage for an Advantedge deal.

Effective Jan 1 they are also waiving the aggregation fee on all lenders where 15% of your monthly business is done thru Advantedge. That means 8.5 out of 10 deals can be done elsewhere.
Click to expand...

Thats the same model as through Choice I believe.

ta

rolf
 
Qlds007 said:
I am with Aaron don't do that much thru CBA as i dont trust them.

Whilst Advantedge pay Fast / Choice / Plan Brokers 0.7% upfront Fast waive the Aggregation percentage for an Advantedge deal.

Effective Jan 1 they are also waiving the aggregation fee on all lenders where 15% of your monthly business is done thru Advantedge. That means 8.5 out of 10 deals can be done elsewhere.
Click to expand...

Gee talking about conflict of interest ...reason why Connective is a great aggregator - fixed aggregation fee, no matter where you place the deal...can solo focus on the client, rather than the bottom line ( which i believe most brokers does already anyway)
 
Many would argue its not conflict of interest. Pros with Advantedge - good and cheap products, upfront valuation, good policy. Cons - servicing, they don't accept addbacks which is pretty poor, terrible turnaround times, ATM network isnt the best.

They definitely come out on top for lower end loans and very high loan amounts ($1.5mil and above). Again what has been letting them down is their turnaround times which is a massive problem when the customer requires quick finance.
 
Mick C said:
Gee talking about conflict of interest ...reason why Connective is a great aggregator - fixed aggregation fee, no matter where you place the deal...can solo focus on the client, rather than the bottom line ( which i believe most brokers does already anyway)
Click to expand...

connective aint the only one :)

ta
rolf
 
DEC said:
What chance is there of them doing an RHG , jamming up rates way over and above anyone else?
Click to expand...

unlikely

RHG had quite stiff 1to 3 % exit costs which now no longer apply, so moving could be easier, but obviously not much good if u are under water, have lost income, had more kids, are on lo doc etc.

ta
rolf
 
Just CBA hedging their interests against the shifting dynamic towards using brokers.

NAB has Advantedge, Westpac has RHG which kind of gives exposure, CBA has MOC and Aussie.

Does ANZ have any major holdings in the distribution market?
 
I would disagree wiith Sharin as i find the Advantedge service excellent thru Fastlend.

Maybe it is i have an excellent BDM and we provide them with a decent flow of deals.

ATM Network is as good as any with NAB, Rediteller.

Ok not ideal for S/E if you need to incorporate 101 addbacks.
 
Everyones talking about this being good for CBA, but no one is asking with John sold 80%???

He's got Australia's best pyramid scheme through Aussie- he gets a HUGE slice of every deal and owns the books of all his brokers, so if he's prepared to sell, perhaps he's getting out while the getting out is good???

i.e maybe he thinks that with DEF's and exit fees gone, his book aint worth what it used to be, and as online lending takes hold, his book may shrink- so take the money and run. It's not as thoigh he needs the money. he has plenty. Who knows.. but I have to wonder why he sold if he is confident Aussie will grow.

Thoughts?
 
euro73 said:
Everyones talking about this being good for CBA, but no one is asking with John sold 80%???

He's got Australia's best pyramid scheme through Aussie- he gets a HUGE slice of every deal and owns the books of all his brokers, so if he's prepared to sell, perhaps he's getting out while the getting out is good???

i.e maybe he thinks that with DEF's and exit fees gone, his book aint worth what it used to be, and as online lending takes hold, his book may shrink- so take the money and run. It's not as thoigh he needs the money. he has plenty. Who knows.. but I have to wonder why he sold if he is confident Aussie will grow.

Thoughts?
Click to expand...



perfect time to take the cash and relax, he tried to pass the baton but the marketing died without him the face and he had to come back, why not take the cash and forget all the hassles, job done.

i think kenny rogers put it best....
 
euro73 said:
He's got Australia's best pyramid scheme through Aussie- he gets a HUGE slice of every deal and owns the books of all his brokers, so if he's prepared to sell, perhaps he's getting out while the getting out is good???

i.e maybe he thinks that with DEF's and exit fees gone, his book aint worth what it used to be, and as online lending takes hold, his book may shrink- so take the money and run. It's not as thoigh he needs the money. he has plenty. Who knows.. but I have to wonder why he sold if he is confident Aussie will grow.
Click to expand...

Online lending is just a small section of the market and I suspect it will remain so for quite a long time to come. Large companies like banks do not lend out money willy-nilly because they have strict requirements from APRA to verify the information that they are given or have large capital requirements imposed on them. Verification of payslips etc has to be done by a person...

As for John Symonds, I have nothing but respect for him for building up a big business after coming from a bankruptcy. Sure, he probably takes a bit too much from the franchisees but ultimately that's their choice to agree to those terms. I personally think being an Aussie franchisee is a bit silly but that's me. He's probably selling up because he wants to cash out after putting in the hard yards - and that's fair enough.
 
Qlds007 said:
I would disagree wiith Sharin as i find the Advantedge service excellent thru Fastlend.

Maybe it is i have an excellent BDM and we provide them with a decent flow of deals.

ATM Network is as good as any with NAB, Rediteller.

Ok not ideal for S/E if you need to incorporate 101 addbacks.
Click to expand...

What does great service or a great BDM have to do with turnaround times? Advantedge are running at 5 working days which is poor and its got nothing to do with Christmas as they have been running on 4 working days for the last 6 months. They have been also saying that they are changing the addback policy for months now.
 
You must log in or register to reply here.

Similar threads

S
Financing process - first purchase
Replies
19
Views
3K
tobe
tobe
O
Should we sell our PPOR to cash in CG for our bucket house?
Replies
2
Views
1K
Paul@PFI
Paul@PFI
G
Financial Planners comparison
Replies
12
Views
2K
Peter_Tersteeg
Peter_Tersteeg
Marty McDonald
$500 48 hour service guarantee?
Replies
18
Views
3K
Jamie M
Jamie M
Redom
How to grow a multi-million dollar portfolio on an average income
2 3 4
Replies
77
Views
31K
C Stewart
C
Back
Top