Choice denies plans to offer mortgage broking

Consumer group Choice has no plans to launch a mortgage broking service, according to chief spokesman Christopher Zinn.

“We are not getting into mortgage broking, but we are looking at the possibility of financial advice,” Zinn has told Property Observer.

“We are interested in entering a number of markets where there is room for consumer benefit.

“We believe there is a great need for a trusted independent brand which can deliver cost-effective, reliable financial advice.

“Our role is to steer people in the right direction to make the right decisions. This might not mean doing it ourselves, but partnering with providers.”

Zinn says Choice can only earn remuneration which is conflict of interest free and “product-neutral”.

Zinn clarified Choice’s future plans following a confusing and erroneous report in the Australian Financial Review that said Choice was planning to offer financial advice and take on the mortgage broking industry.

Licensed mortgage brokers are not allowed to provide financial advice but can only recommend credit products.

Choice has already ventured into a quasi-mortgage broking space via its One Big Switch campaign in partnership with Lachlan Harris, former press advisor to Kevin Rudd.