The Royal Commission

A Royal Commission is the highest form of review and inquiry into matters concerning the public.

Since March 2018, A Royal Commission has been investigating Australia’s financial sector to determine if entities have engaged in misconduct.

WhiteStar supports a more transparent and effective finance industry and we believe those who have done wrong should face appropriate repercussions. We do not support a confusing industry where borrowers like you might not know who to turn to when you need finance and quality information.

Below are some popular questions our clients have asked us since the Royal Commission has been underway. We thought we might share them with you.

Have all banks treated customers poorly?
No. Some banks have not acted in the best interest of the customer. However, that does not mean all banks are bad or that you can’t still get a great home loan or refinance solution. Borrowers need to be more informed about their financial goals and what products they choose to finance their goals. As the Royal Commission continues we will see how banks who have engaged in misconduct will provide compensation.

Are Mortgage Brokers also included in the Royal Commission investigation?
Yes. Misconduct among some Brokers has been investigated. Large chains such as Aussie Home Loans have had to face the Royal Commission and answer tough questions. A key area of contention is how Mortgage Brokers are paid commissions. Commisions are generally paid on loan amounts, although the amounts vary between lenders. Some question this approach as the Broker might be influenced to recommend a product based on a commission rate. You have every right to ask your broker how they are paid.

Has WhiteStar been affected by the Royal Commission?
Not in a negative way. As we are smaller, our business does not operate as a franchise. Plus, we have a big focus on compliance. In terms of how our mortgage brokers are paid, we do things a little differently. WhiteStar Brokers are paid a salary not a percent commission on loan amounts. This encourages our Brokers to deliver a better service to you.

In summary, we support a better and more transparent industry. At WhiteStar we believe the best way to achieve this is to continue helping Australians make more informed financial decisions with peace of mind.