Broker commissions safe with new GE Money Basic Home Loan

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At a time when affordability is top of the agenda for Australian borrowers GE Money Third Party Solutions’ (GE Money) has stepped up a gear and rolled out a new low-rate prime basic home loan.

The new basic GE Money home loan not only ensures brokers can deliver one of the most competitive products on the market to their clients, they can rest assured that commissions are also guaranteed, says the lender’s managing director Mark Rice.

“The mortgage broking industry is entering a time of change. We’ve already seen a slowdown in some housing markets as well as a rise in funding costs – the last thing brokers need to worry about is their commissions,” says Rice.

“Brokers have our commitment that we’ll support their businesses through guaranteed commissions on our prime mortgage products – including our new basic loan – through to June 2009.

“Our broker promise is that we’ll back them regardless of market pressures. We’re providing certainty in uncertain times,” he says.

The new basic mortgage offers borrowers a low 8.69 per cent interest rate (comparison rate 8.71 per cent) matched with no application fee, monthly or annual fee. The basic product also has no redraw fee, low start-up costs and flexible repayment options.

The re-launch of its basic mortgage is the newest offering in GE Money’s renovated suite of prime mortgages called Flexible Options.

The lender re-launched its lo doc mortgage to brokers in March this year.

GE Money’s new basic prime mortgage comes as a breath of fresh air for the nation’s brokers as borrowers are faced with mounting mortgage costs, says Rice.

“Right now, we’re in a highly price-sensitive market as borrowers feel the brunt of RBA and bank rates hikes. Brokers that have access to low rate loans increase their competitiveness and overall value proposition to their clients,” he says.

“A lot of the features attached with a mortgage all too often go unused by a large cross section of the nation’s borrowers, so why should they pay a high interest rate,” says Rice. “Our revamped basic home loan lets borrowers pay for what they use.”

Over 2,000 brokers are now accredited to offer GE Money’s Flexible Options.

GE Money is funded with the support of a guarantee from its owner, the General Electric group. GE is one of the few AAA rated companies in the world.

According to Rice, this funding strength gives the lender the confidence to produce products that meet both market and broker demands.

“We’ve re-launched our suite of prime products with the goal of reinforcing our position as the leading alternative to the mainstream banks,” says Rice.

“Our promise to brokers is that we’ll continue to match products and service to the changing needs of borrowers and the brokers we partner.”

Source: GE Money

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1 COMMENT

  1. I believe its a broker’s basic responsibiblity to assist the borrower to repay the loan ASAP through a Mortgage Reduction Programme (how many remember the 17.5%??). CBA has a system which handicaps the borrower from doing that so I’ve deliberately allowed my accreditation there to lapse.
    Now I hear the bleating of the brokers @ the CBA’s actions & say, well?
    However I do wonder about the balance of power & wonder & if the 4 could be perceived as misusing their status from time to time under the Trade Practices Act?
    So, I’ve recently joined a group called “The Broker Group” which is a discussion group meeting with the freedom to discuss issues without the influence of aggregators or lenders. It meets @ Rosehill Bowling Club on the last Friday of each month-starts 1030 goes to 1230 costs an expensive $10 to cover room hire & morning tea-all welcome. The amount of concern in the industry is immense now as is indicated by the growing numbers at the meeting each month & this article & the responses to it.

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