February 21st, 2010
Trailing commissions that lenders pay to brokers could be on the way out, Finance Brokers Association of Australia president Peter White.
A trailing commission is essentially a percentage-based sales commission that’s paid for as long as the customer continues to hold the loan.
White has told industry publication The Adviser that some lenders have already reduced their trailing commissions to brokers.
“No other country pays trail commissions to brokers, so Australia is behind the eight ball in this respect,” White told The Adviser.
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February 21st, 2010
The financial press has stopped short of declaring Tuesday a VGFC Day (Victory over the GFC), but just about every other superlative was in use in the reporting of the Westpac result. I was expecting to turn on the evening news and hear ‘roll out the barrel’ being played over the top of images of bankers dancing down the streets showering in ticker tape and being kissed by strangers.
The banks have it all their way at the moment. They can access capital markets freely, non-banks can’t. They can cherry pick credit proposals, non-banks can’t. They can set their own prices, etc.
But the fatter bank profits become, the sooner non-banks will return in numbers. If you believe in the good book of orthodox micro-economics, you have to go with that.
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February 21st, 2010
by Peter Mericka B.A., LL.B
Selling a refrigerator or the latest style of mobile phone requires salesmanship – the ability to convince the purchaser that they should buy what the salesperson is trying to sell. But the sale of real estate is something entirely different. Real estate is not sold, real estate is bought!
When a purchaser has done their research, determined where they want to live, what type of property they need, and how much they are prepared to spend, they begin the search for what they want. When the purchaser has found something that satisfies their search criteria, they make enquiries about it. It is at this point that the purchaser makes contact with the person in charge of the sale.
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February 16th, 2010
Westpac Banking Corporation, Australia’s third-biggest lender, today reported a 33 per cent rise in first-quarter cash profit on lower impairment costs but maintained a cautious outlook.
The profit announcement comes just weeks after Westpac shocked customers and the government by raising interest rates on its standard variable mortgages by 45 basis points – almost double the 25-basis-point official increase announced by the Reserve Bank in December.
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Private funds from 6.05% – No LMI – Up to 5 years – Residential – Commercial – Rural
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