Brokers unhappy with ASB's new refix process
ASB has introduced a new electronic process of dealing with home loan refixes which is undercutting mortgage advisers on rates and terms.
Thursday, November 17th 2016, 1:20PM
The bank, is now contacting clients directly when it comes time to refixes offering new rates and terms.
It is doing this electronically and is contacting all clients no matter which channel they came through. Under new process ASB is offering new rates and terms and often the rates are better than what mortgage advisers can offer.
They are also pricing these re-fixes differently, and clients will be offered cheaper rates based on the amount of overall banking business with this lender – not just on loan size.
Mortgage Supply chief executive Jenny Campbell says she has voiced concerns that this process completely excludes the adviser, and offers the client zero opportunities for advice.
She is telling her advisers that they must brief their ASB clients that they will be offered new terms directly from the bank.
She says clients should be told to call for advice before hitting the “accept now” button on the bank offer.
“ASB also made it very clear, that the rates quoted directly to client are non-negotiable, and no further discounts will be offered.
Loan Market adviser Bruce Patten says ASB’s move is undermining the bank’s position with mortgage advisers.
He believes advised clients will move away from ASB.
“It is undermining everything they have said (about supporting mortgage advisers),” he says.
ASB General Manager Business Banking and Retail Specialist Services, Ian Boyce can’t see what the problem is. He says the bank is responding to what customers want.
“Hopefully this is just the beginning.”
“If we don’t make things simple for customers then they will go to someone who does,” he said.
He confirmed the rates and terms offered were being calculated on a customer’s total relationship with the bank.
“It’s not seat of the pants pricing,” he says. “It takes a lot of things into consideration.”
Boyce says mortgage advisers have to have a value proposition which is more than just price and they have to add value for their clients.
| « RESIMAC answer broker questions over its new channel | Insuring houses tougher post quakes » |
Special Offers
Comments from our readers
No comments yet
Sign In to add your comment
|
|
Printable version |
|
Email to a friend |
