The solution to date for many mortgage brokers, especially since the introduction of BID, has been to “tick and flick” the client to a consumer asset finance broker and earn a referral fee. Giving control of that client and future personal loan transactions to another broker.
A quick summary of BID
BID was introduced for mortgage brokers on 1 January 2021. It essentially enforces brokers to act with greater consideration toward the interests of consumers.
While much of this is grounded in the need to explain the pros and cons of a loan product to the consumer, the finer details can make meeting these guidelines complex when it comes to personal loans.
BID and mortgage brokers
On paper, BID can seem to be just about rates and repayments. Many might think the cheapest car loan is the best car loan, but the reality is that this statement isn’t always true.
One simple example of this is found in early repayments. Where your client is looking to acquire a car loan and repay the entire amount early, this consideration can make a cheaper car loan unsuitable if the lender charges very high fees for early payout.
This is just one small example of how BID compliance can make offering personal loans a headache not worth the effort considering the remuneration scheme.
Enter Money Matchmaker™ - an online service which matches personalised loan offers to customers anywhere in Australia. This includes a growing panel of 11 lenders, all offering real offers, rates, and repayments through a unique online process.
Money Matchmaker™ is a -compliant loan-matching process, designed with brokers, lenders, and customers in mind for a total solution. As a broker, you can register to receive a unique link to the Money Matchmaker™ engine - which you simply send to your clients to receive their best personal loan offers after going through a basic fact-find.
Throughout your client's loan journey, we keep you up to date. Rest assured, only the lender your client chooses will make contact with them, they won't be inundated with unwanted calls.
Best of all, there are no fees for you or your client to use Money Matchmaker™. A referral fee is earned when your client takes out a loan with their chosen lender which is shared with the referring broker.
If you’re ready to increase your product offering and refer your clients to a loan-matching process you can have confidence in, speak to one of our team and book a demo today.
We’ll be happy to talk you through the details and show you how simple the process is for both clients and brokers alike.