06 Feb 2019

Don’t get mad at the banks – get even

Australia’s largest non-bank lender Firstmac yesterday called upon mortgage brokers to stop sending business to the Big Four banks in response to their betrayal at the Financial Services Royal Commission.

Firstmac Managing Director Kim Cannon said the big banks had prompted the Royal Commission through a series of scandals and had then successfully deflected blame onto mortgage brokers.

“The Big Banks saved themselves by brazenly throwing mortgage brokers under the bus,” Mr Cannon said.

“The only reasonable response from mortgage brokers is to protect themselves by diversifying their businesses so they aren’t so reliant on the banks.”

Mr Cannon said it was unfair that tens of thousands of mortgage brokers could suffer severe financial stress as a result of changes recommended by the Royal Commission while shares in the big banks had rallied nearly 5 per cent in a day.

“Australians have nothing against mortgage brokers and it wasn’t the brokers that provoked this Royal Commission yet they are the biggest losers from the Commission’s recommendations,” Mr Cannon said.

“We are very disappointed that mortgage brokers have been made into fall guys for the banks and we support them 100 per cent. We will work with brokers to ensure that their businesses remain viable despite this very cruel and unfair blow.”

“We have a long history of being more innovative than the banks so watch this space.”

Mr Cannon said that the Government must be careful to ensure that broking services remained affordable for the general public.

“It is very important that any changes to the commission structure for brokers don’t put their services out of reach of ordinary Australians,” Mr Cannon said.

“Mortgage broking advice must remain a service that everyone can afford, not just the rich.”

Firstmac Limited is an independently-owned, Australian financial services provider with almost 40 years’ experience in home and investment loans.

Firstmac has written in excess of 100,000 home loans and manages approximately $10 billion in mortgages and $250 million in cash investments. Firstmac is a premier sponsor of the Brisbane Broncos.