CHOICE says Aussie Home Loans makes claims of finding Australians the ‘perfect loan’ or the ‘best loan’, yet research shows two in five loans are sent to the Commonwealth Bank of Australia, the broker’s owner.
“Aussie Home Loans is a well-disguised sales outpost of the Commonwealth Bank,” CHOICE CEO Alan Kirkland said in a statement today.
“Aussie is making big promises to create the illusion that it operates in your best interests but there is no evidence that they will get you the ‘best’ loan.”
News.com.au has attempted to contact Aussie Home Loans for comment. Chief executive James Symond told The Daily Telegraph it was “crazy” that Choice had not raised its concerns with the company, and said he did not recall the broker using the words “perfect” or “best” in a recent ad.
“Choice has a bee in its bonnet about mortgage broking industry but consumers are voting with their feet,” Mr Symond said.
CHOICE has complained to the Australian Securities and Investments Commission, asking the regulator to investigate Aussie’s claims and hold them to account.
More broadly, CHOICE is calling on all federal politicians to support the passage of the mortgage broker best interests duty, laws which it expects to be introduced into parliament this year.
Mr Kirkland says this is an important response to the Hayne Royal Commission recommendations.
“Treasurer Josh Frydenberg has created a rare opportunity to reform the mortgage broker industry,” he says.
“A strong best interests duty, well enforced, will make brokers live up to the promises they already make to their customers.”