An Interesting Flyer in My Letterbox ...

[LynnH]

There was an interesting flyer in our letterbox yesterday from an 'offshoot' of one of the Big 4 banks. They are conducting "in home lending assessments" in our street this week for those who may want to:

~ move to a fixed rate home loan product
~ buy a home or residential investment product
~ access the equity in their property
~ refinance existing loans, or
~ consolidate their debts through their home loan

Just ring for an appointment ..... etc.

In all my years of investing, I have never seen anything like this before from a financial institution. It sounds like the flyers we often get from REAs!!

Of late, we've been hearing of banks tightening their lending criteria, that funds are harder to source and the cost of funds is high - and now we have a bank wanting to give away money??? I'm not quite sure what to make of it all.

Am not intending to take them up on their 'generous offer' - anything addressed to "The Householder" always gets binned in this household!!! However, I would be interested in hearing any comments/thoughts from forumites .....

Cheers
LynnH

 

[Aimjoy]

LynnH,

I think that despite credit being crunchy i.e. lending criteria being tightened, the banks are still there with their primary purpose to increase shareholder value.

That means they still have to grow their market share and targets to meet. What better way then just churning (stealing is too strong a word) other bank's good customers?

I've had my Bank Manager actually visit me (1st time in 15 years) asking if I want more $. Once we had our meeting he asked "Are there any Q's you have for me?" I said only one; "Why are you out of your office doing this?"....that's when I got the above response.

 

[tobe]

I had a letter from a major banks 'mobile lender'. The deal is, they are actually franchisees of the lender, so just a commission based broker, with only one lender. Im pretty sure mine was addressed to me (I have a loan with that particular bank) and I remember getting upset they might be canvassing all their data base of broker originated loans.

 

[LynnH]

I understand that they've got to keep the shareholders on-side and meet targets and all the other things that good banks are supposed to do - I'm just surprised that such hitherto venerable institutions as banks seem to be adopting sales methods more akin to those of door-to-door salesmen (sorry, salespersons - gotta be PC).

Cheers
LynnH

 

[Rolf Latham]

Hiya 2B

The deal is, they are actually franchisees of the lender, so just a commission based broker, with only one lender

In my neck of the woods that makes them a mono product sales person rather than a broker

There are quite a few of these around now........ANZ Mortgage Solns, RAMS, and BOQ of course................

ta
rolf

 

[Shaun M Smith]

The current agenda of the banks is to increase market share. They are doing this in various ways including through the creation of their own mobile type "brokers".

 

[Aaron Sice]

salesmen (sorry, salespersons - gotta be PC).

Cheers
LynnH

no you don't. PC is for ill educated individuals trying to sound smarter than they are.