Friday, February 22, 2019

MFA0019 Couple Signature 2

You may have heard the news about the Royal Commission's recommendations relating to the mortgage broking industry. Here is an update on what it may means for you - especially if the recommendations becomes law. 

Business is as usual for Zippy Financial. Nothing has changes yet and our service remains the same. We are here to help and, always will do so with the best interests at heart.  

Our home loan services are still at no cost to our customers. However, the Royal Commission has made recommendations that could impact your ability to secure a competitively-priced home loan in the future, so let's cut through the media noise and provide some basic facts. 

What does the report say?

At present, lenders pay mortgage brokers a commission (fee for all the work we do for you rather than their staff member or call centre member), which enables us to provide our home loan service at no cost to our customers. The Royal Commission's final report recommends gradually banning commissions and moving to a system where home loan customers will need to pay brokers a fee for the service we offer. 

What does this mean for you?

This is a major change and a threat to competition in the home loan market. Mortgage broking as an industry has delivered important benefits to all Australians. Today, mortgage brokers are responsible for arranging almost 6 out of every 10 (59.1%) home loans and this figure is growing. For over two decades, we've helped drive competition in the home loan market, giving home buyers greater choice and driving home loan interest rates down. 

If the proposed changes were to become law, many consumers would not be able to afford the services of a mortgage broker and mortgage brokers would struggle to survive. Without brokers, more power will go to the big banks and Australians will have less access to smaller lenders as they'll stop lending/close less access to credit, and interest rates are likely to rise due to lack of competition. 

Where to from here?

The Banking Royal Commission has offered recommendations only. The Federal Government will now consider what legislative changes should be made, which will take some time. We need your help to ensure the policy makers understand the potential impact of the changes on borrowers. 

Stand with us in this first for competition and choice. To do so, please sign the industry's online petition at If you would like to take further action, the website also provides the tools for contacting your local MP, this will only take a minute to do. 


We will keep you up to date with any changes the government introduces. 

Right now, it is business as usual for us and we are here to help with all your finance needs - car loans, insurances, financial planning, business loans and making sure your home loan is right for you. 

We are here to help and listen. If you have any questions about how the Royal Commission recommendations might impact you or if you want to share your story, feel free to reach out. We are actively looking for any clients who are happy to go on video stating why they want to have access to Mortgage Brokers and how they help you.

And if you know anyone looking for finance we'd love your referral!

MFA0019 Couple Signature 1

Two Sisters

In July 2017 we were approached by 2 sisters who were hoping to start a joint property-investment portfolio. Both were divorced with children and were starting from scratch with a gift from their parents to top up their savings.

The sisters had been turned away by their own bank and a few brokers. They were told that they wouldn’t be able to afford to purchase, and they felt no one was interested in actually giving them their time to try and put a plan in place for them. Feeling dismissed, a bit deflated but optimistic, they were referred to Zippy.

After our initial interview, we were able to establish that there was definitely capacity for these sisters to borrow with some lenders. We guided them through the pre-approval process and they were both over the moon when the approval was issued – so excited that they immediately started looking at properties.

As first-time investors, the sisters required guidance, mentoring and assistance throughout the process, all of which Zippy provides to every customer as a matter of course. Upon locating a property, we were able to obtain them a fast approval and had them settled on their first joint investment property by October 2017.

But their journey didn’t end there. The sisters had big dreams of creating a portfolio of multiple properties. We worked with them to plan for the next one, calculating the deposit required to move onto a second property. They knew it was a longer-term goal but with a figure in mind, they started saving. At Zippy we routinely check in with all our clients every 6 months to review their interest rate, offer assistance and also just to say hello, as throughout the process of customers become part of our Zippy financial family.

Between reviews, we received the call, they had reached their savings goal and were ready to purchase again! Lending policies and debt servicing had tightened significantly since their last purchase, so we carefully assessed and packaged their application prior to submission. A week later, armed with their pre-approval, they made an offer on their second property. Unfortunately, the excitement was short lived when the lender returned a maximum LVR of 65% due to postcode restrictions. But the sisters weren’t ready to give up, and neither were we. We knew we would find another option. It took a little time, shopping around the scenario to find an alternative, which meant we had already lost over a week (with a cooling off period of 10 working days) with the first lender so we really needed a fast turn around at this point.

We were able to submit the application, have the property valued and obtain the unconditional loan approval within 5 working days, to get them there within the cooling off period. Our clients, although nervous, express that they had full faith in Zippy and our ability to get them across the line on their second purchase. This property settled 3 months ago, and we have since had a new planning meeting to prepare for property number 3.

Our clients return to Zippy not only because we provide superior customer service, but because we genuinely share in their dream and see their bigger picture with them. We look forward to assisting these clients purchase their 3rd and 4th investment properties and building the portfolio that they've been dreaming of for years. 


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Contact Details

Zippy Finance 

PO Box 3078
North Turramurra
NSW 2074

T 1300 855 022 

Louisa Sanghera is a credit representative (437236) of BLSSA Pty Ltd ACN 117 651 760.  Australian Credit Licence 391237. ABN 85 168 278 975.

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