Aussie Home Loans founder John Symond has revealed the benefits of being backed by Australia’s largest lender.
Commonwealth Bank’s ownership of Aussie was highlighted during the Financial System Inquiry as an example of vertical integration in mortgage broking.
Mr Symond said he looks on the bank’s ownership of Aussie in a very positive light.
“I think if you spoke to our brokers, they know that they are never going to lose their trail,” he told Mortgage Business.
“A lot of the aggregators couldn’t say that, because if something happened, there goes their trail.”
The Financial System Inquiry’s final report failed to find any evidence that vertical integration creates conflicts of interest.
However, it did recommend increased disclosure of bank-owned brokerages.
Mr Symond said he is “all for disclosure” and has “no embarrassment” telling people that CBA is the majority shareholder of Aussie Home Loans.
“If I wasn’t positive about CBA I wouldn’t have done the deal,” Mr Symond said.
“I always put my money where my mouth is,” he said.
“I’ve got a big bag of CBA shares, so I believe in them.”