I wrote an article today for Australian Broker magazine which I believe will appear in one of the next two issues. It relates to a launch yesterday of a new mortgage broking business. I thought I should post some info here about what is going on.
The Australian Newsagents Federation have teamed up with a Mortgage Broker to offer finance through newsagents. It was privately launched yesterday. Michael Klim is the face of the new service and he will pop up everywhere. It is getting so you can’t go anywhere without being offered finance. The Newsagent’s service is merely a referral service to a new, untried and untested broker service. It was rushed through to beat a fellow national competitor to the market.
That’s right! Another national competitor. Rumour has it that Australia Post will also offer a similar service through all Post Offices. It seems like only a matter of time before McDonalds jumps on board and the annoying question we will all hear will become:
“Would you like a HOME LOAN with that?”
Anyway, I do not see them as a threat as a referral service is only as good as the last person who used the service.
You heard it here first!!! [cigar]
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auComments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Rob,
All along, for years people were buying hamburgers at Maccas. Then I read Robert Kiyosaki who stated that McDonalds were ‘really in the business of owning real estate’. What you’ve said just confirms it.
Cheers,
Gatsby!actually it was Ray Croc, the founder of McDonalds, who said he was in the real estate business. The burgers were just something to do with the land.
Regardless of what anyone thinks of McDonalds, their business models are exceptional and one that many people should aspire to.
Their model regarding purchasing of sites is done in such a systematic way that I don’t think they would ever lose on a property purchase.
Regarding their retail model, need I say more than they sell hamburgers? Everyone sells hamburgers!
I very much admire McDonalds management.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auComments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Newsagents, Aussie Post… I’m not sure if I would trust their referral… how much credibility does it have?
What do these people think borrowers do? Do they think: “Hummm, I need a loan but I don’t know who to trust or where to get the best advice? Hang on… what about the newsagent down the street. He knows how to sell newspapers so he must know a lot about finance and how to pick the good from the bad. I’ll ask Joe”.
Why not ask the newspaper delivery boy…….
I don’t think so! That might have worked in the 1950’s when people had a friendships with the “local businessmen”.
It’s 2004!
But good luck to them all the same. I wish them the best success. Intuitively I don’t think it will work but good luck.
Cheers
Stu
Yeah but they don’t sell hamburgers, so personally I don’t see how it could work.
Gatsby.Now that ANZ has cut the brokerage paid to Mortgage brokers one can only assume the other banks will be having a long hard look at the amount they pay.
As such any business that has a low & fixed cost base that can also do some referrals at the margin will have legs.
ANZ have not cut rates for Mortgage Brokers – well not mine! They are still looking into it through their New Zealand subsidiaries to determine it’s viability. If they do drop them, I am certain they will quickly bring them back up again as Mortgage Brokers have a lot of places to go for loans.
Macquarie increased rates as a result of the talk about commission drops to stick it to the banks. Others will follow like RAMS and Liberty.
Regarding the talk about McDonalds, I read this interesting snippet a few days back:
6 December 2004 – McDonalds now top spot for cash out
Financial Review 06/12/04
The McDonald’s fast food chain claims to be the biggest dispenser of cash via Eftpos in Australia. Customers are free to use Eftpos in McDonalds to withdraw cash, even if they do not buy anything. Research for big retailers undertaken by TNS Consultants found convenience was the main reason someone uses a bankcard to pay. Consumers don’t clearly distinguish between payment methods, mixing up card brands, card types and banks.With this sort of turnover for banking transactions, the new question is imminent….
“Would you like a HOME LOAN with that?”
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
If they really did offer a mortgage with your meal, what would be the best loan type though. Eat in or take away? With McDonald’s turn over your port folio could really super size in no time.
Cheers,
Gatsby!Looks like CBA are cutting their commission as well….looks like the newsagent model is getting better everyday.
The CBA commission cuts will not affect me either. Our group – The Mortgage Professionals – has excellent submission quality etc so they get the full commission. The sloppy brokers will suffer most. Everyone is already jumping ship in any case.
We had an idea they were trying something when they started releasing their retail outlet models but they are committing suicide in the broker channel.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
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