Unbiased & Impartial Service
The question of bias or impartiality is really a matter of balance. Balance is not achieved by
processes or procedures adopted by broking firms. Rather, it all comes down to the professional relationship between the lending manager and the client.
"Unbiased" or "Impartial" - What Do They Mean?
Impartiality means that the assistance being offered by the mortgage broker is not influenced by factors that conflict
with the interests or the client, or are not related to the interests of the client. It has nothing to do with company policies
regarding payment of commissions to individuals.
To put it another way, it is possible for a company to pay its employees the same
amount, while the company itself aligns itself with mortgage providers with regard to the company's best interests, rather than those of the client.
A mortgage broking company has to do more than simply advertise itself as "unbiased" or "impartial". It must provide as
much information as its clients may need for them to conclude, for themselves, that they are receiving assistance that
is unbiased and impartial.
"Impartial" and "Unbiased" As Selling Tools
Unfortunately, the terms "impartial" and "unbiased', while appearing on many web sites and in advertising material, are not supported by any firm evidence. Worse still, they are often used by those who are least likely to be able to keep the consumer insulated from factors of bias.
Choice By Computer - Inherent Bias?
Computer programs designed to "choose" a loan product on your behalf may be prone to inherent bias. This is because the person who to created the computer program has already made choices about the information it contains, but is not available to answer your questions about those choices.
Brokers Who Are Paid A Fixed Remuneration
It can be quite misleading when a loan broker claims the title "unbiased" merely because he or she is paid the same no matter which loan a borrower chooses. Such brokers often rely entirely upon the computer program provided to them by their franchise group (See
Choice By Computer - Inherent Bias? above). A more relevant issue is whether the organisation itself is paid the same by each and every lender!
"Unbiased" Brokers Accused Of Bias
A high-profile, franchised mortgage broking group that offers an unbiased choice of home loans, was recently "caught out". As well
as the commissions paid on a loan-by-loan basis paid to it by a leading bank, the broking group had also insisted on another $200,000 in "sponsorship payments" to fund staff conferences. The staff, by the way, are all paid
the same, no matter which loan a client chooses (they claim that this makes them "unbiased").
Is There A Way To Ensure Impartiality?
The only sure way to ensure an impartial and unbiased service is to make your choice of loan on the basis of well supported information.
You are entitled, not only to information, but also to the facts and figures that support that information.
Ask questions, seek answers, and consider the professionalism of the person who is assisting you to choose your home loan. A lending manager should inspire confidence and gain trust.
Our approach to the impartiality issue is to develop a strong relationship with each client. We want our clients to come back to us. We also want our clients to refer their friends and family to us.
The only way to gain these referrals is to gain trust and respect, and we are prepared to work hard earn both of these.
The Choice Is Yours
When all is said and done it is you, the client, who will make the final choice when you source a loan through Real Choice Mortgages. That's what REAL choice is all about!
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