Bank branches are slowly disappearing as we click and tap them into redundancy. Westpac’s announcement this week sums it up: about 200 teller/personal-banking roles are set to go.
Bank bashing is a sport Australian’s love, but this latest announcement is a response to where their customers actually are – doing banking on their phones, or on hold to call centres. Sure they’ll cut costs in the process and increase their bulging profits as a result, but it is an understandable move.
How often do you go to a bank branch? Cheques are rare, deposits are electronic, ID and card issues are handled online, and lending conversations have shifted to brokers. We didn’t wake up to fewer branches, our habits quietly voted for them.
In this week’s newsletter, we take a somewhat lighthearted look a the serious matter of compliance in the broker world, which reveals just how much we need to do to ensure your clients get the best possible advice from us.
Compliance is generally pretty bland, and almost always cumbersome. Here’s our best effort at explaining our compliance burden in simple language, whilst comparing it to the requirements of other finance brokers.
Home loans (aka the paperwork Olympics)
If lending had weight classes, mortgages are heavyweight. Brokers have a Best Interests Duty, which means we must prove – on paper – that the loan suits the borrowers goals, budget, and future plans.
Expect deep dives into income, expenses, debts, bank-statement behaviour, even genuine savings. Then add disclosures, product governance, valuations, maybe LMI… and file notes for days. It’s thorough because the stakes (and loan sizes) are big.
Personal loans (sensible shoes, not stilettos)
Still serious, just less… epic. Brokers must show the loan isn’t unsuitable: check income, expenses, liabilities and purpose; verify with payslips and bank statements; and give you the right disclosures.
No property valuations or LMI sagas. Turnaround is usually quicker, and the paperwork pile is more “document wallet” than “archive box”.
Car / asset finance (keys, please)
Same not-unsuitable rules as personal loans, plus some fun extras about the asset: invoice, VIN/HIN, insurance, and security registration.
Disclosures still apply (farewell, commissions), and documented affordability and suitability. It’s generally fast—particularly when the asset details are ready, because there’s no property chain to slow things down.
So what’s the real difference?
All three require good fact-finding, sensible verification, and clear disclosures. But home loans are the most demanding thanks to Best Interests Duty, deeper expense scrutiny, extra third-party checks, and more moving parts. Think marathon vs. two brisk 5Ks.
Bottom line
We keep the process clear and kind—translating acronyms, taming forms, and timing everything so settlement day feels easy. The client brings the goals; we bring the compliance cape.
Variable
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR.
1 Year Fixed
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR. At the end of the three year fixed period, the borrowers interest rate will revert to a standard variable rate for the life of the loan.
