Are Good Finance Brokers/Personal Bankers in Demand?

You would think if you were paying over $120,000/year in interest to your bank they would look after you yes? Think again!

I was connected with two wonderful new clients today who had worked hard over the past three decades with their construction business to create a great portfolio of investment property with strong equity in it.

What makes me mad is the fact their bank had sat back and made over $120,000/year from them in interest, had ridden the wave of high interest rates and hadn't done the right thing by them by passing on rate cuts or keeping competitive with the market.

Overcharging by $32,000/year

0.5% would have saved these genuine people over $32,000/year in interest! The bank chose not to and instead gave cut priced rates to new customers to lure them in and pocket the extra $32,000. How annoying you say?

So paying $32,000 extra a year is bad enough, what could be worse? Surely they got red carpet treatment when they visited the bank? Got regular calls, birthday cards, helicopter flights to and from work? No, for this premium they didn't have a dedicated person in branch or bank who understood or valued them and was there at every need, they were alone!

You see today, the banks have MASSIVE, I mean MASSIVE pressure to cut cost and off shore overseas.

Try visit a bank branch

When was the last time you went into your branch??? Someone asked me this yesterday and I honestly couldn't remember. Try it. There will be minimal employees and the ones that are there will be so wound up with targets to cross sell you insurance, credit cards, internet banking, shares, bonds...anything they can to keep hit a target, keep their job and appease their boss and tick a box! If you want to speak with a specialist lender, they should be really bright, business savvy, knowledgable and genuinely have your best interests at heart as their livelihood depends on it, if you find this in a branch please tell me who they are and I'll offer them a job!?

I think it's a sad time to see good employees walk from branches and customers losing the intimate touch they received in the 70's and 80's in face of cost cutting but this gives rise to the demand for good finance brokers/personal bankers!

Why a good finance broker/personal banker will save you $000's

80%. This is a magic number. It's the % of home loans that are provided by mortgage brokers in the UK and USA. Its currently about 50% in Australia! Around 2000 people in the USA and UK started getting fed up of mediocrity, lack of choice and competitiveness in bank land and started going to brokers who cost them nothing and gave them everything, including $120,000 savings per year! As they say, the rest is history and people have been saving money on their home loans and have been getting the service they deserve.

If you want to know about how a good broker/personal banker can help you call Phil Seed on 0466 669 783 or email phil.seed@loanmarket.com.au

I am based in Holland Park and service several areas.