Are branch customers getting preferential treatment?

Advisers fear major banks are prioritising direct mortgage applications over broker-led home loans, as turnaround times worsen. 

Tuesday, September 15th 2020, 6:24AM 5 Comments

Geoff Bawden

With turnaround times taking as long as 10 working days or three weeks, advisers say banks may be giving direct customers preferential treatment.

Geoff Bawden, founder of Q Group, said he had heard growing anecdotal evidence "which suggests that applications lodged direct with the bank are getting precedence over advisers' applications".

"It's not a good look if that is what is happening," Bawden added.

Another frustrated adviser got in touch with TMM Online to claim that direct clients were being given shorter turnaround times.

They said: "Why are there different turnaround times direct-to-branch? It's a question that needs to be asked."

The claims come as banks are labouring under a pile of mortgage deferral requests and home loans delayed by Covid-19. 

Bank staff are struggling to process applications, leading to a deterioration in already-slow turnaround times. 

ANZ, said to be among the slowest in the current market, recently reallocated branch staff to handle adviser applications. It has also bolstered its adviser processing team in recent weeks. 

Have you noticed a difference in direct and adviser-led turnaround times? Please get in touch at daniel@tarawera.co.nz

Tags: ANZ Lending mortgages

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Comments from our readers

On 15 September 2020 at 9:52 am JeffQV said:
It is happening, not sure to what extent, lost two clients to my knowledge over this.
On 15 September 2020 at 5:09 pm Jonny Good Guy said:
Yes it is happening expected from one bank
On 15 September 2020 at 5:10 pm valkyrie6 said:
yes unfortunately branch staff can process applications a lot faster than advisers can when the broker units are not functioning properly , I have never wanted special treatment as an adviser ,just an even playing field , no more no less..
On 16 September 2020 at 11:50 am michaelb said:
Get real you brokers. Banks’ will always give preference to their own customers.
On 16 September 2020 at 12:07 pm Moneykart said:
Yes that is the ground reality.Also have had deals that the broker unit declined/deferred get approved by the branch when the client approached them directly.Advisers generally come last in priority.

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