HSBC Says No to Mortgage Brokers
HSBC says cutting all ties with mortgage brokers is a purely economic decision. Chief executive officer Norman Wilson says the New Zealand banking market has become so competitive that it now has the tightest profit margins in the western world. Basically, HSBC just wasn’t making a buck after paying brokers’ commissions. HSBC has decided that it will no longer deal through mortgage dealers. The bank says that the decision is based purely on economic decisions. The CEO of the bank says that the margins in the New Zealand banking making it a highly competitive market. The bank has the tightest level of profit margins in the Western world in New Zealand. The bank was not making any kind of profit after paying the brokers the commission. This competitive banking market is definitely helping the consumers. The mortgage brokers association feels that this step by HSBC was not expected as the bank did not deal much with brokers.
Tags: Business, HSBC, mortgage broker