Brokers have been urged to gain control over the customer supply channel in competition with the banks, by adding value to the service they provide their client rather than just processing loans.

Speaking at Vow Financial's annual conference being held in Fiji, Redconcierge's Sarah Wells said brokers should focus on the 6 out of 10 clients not using the channel, and that they could achieve market growth by adding value.

Wells said in doing so, brokers would be justified in charging a genuine fee for their services, and that brokers should not view a fee as a direct replacement of commission payments for loan processing.

Rather, she said brokers should charge for experience, knowledge and added services."I don't think brokers should charge just for processing," she said. "I knew if I was going to charge a fee, that I had to add something."

Wells said her business model includes a 'mortgage planning' approach to clients, that involves a full consultation, backed up by interviews with a client's accountants and financial planner if required. Wells said she is able to charge between $550 and $1000 per client, and that she also protects herself via a clawback clause.

Likewise, Grant Howe of Lending 4 U - who comes from a financial planning background - said that he has implemented a fee in his mortgage business, and has had no requests for a refund despite offering a satisfaction guarantee.

He said clients were paying for knowledge and experience. "The way I explain it to clients is that the commission pays for things like rent, administration, power - things like that. But that the fee is what pays me."

"There is a value on what you do, and you should be remunerated for that," he said.

Wells said if brokers add value and control the client, they will not have as many problems with commissions.