SLSP punishes brokers who seek lower interest rates
SLSP, the largest Slovak bank by assets, began paying lower fees to brokers who negotiate a lower interest rate on a loan on behalf of a client. This increases doubts whether brokers prefer clients’ interests to their own fees when recommending a product and its provider. SLSP claims brokers will keep negotiating the best possible terms even to the detriment of their own fees as they are obliged by law to do so. The remaining banks pay the same fee whether brokers negotiate a lower interest rate or not.
In 4Q17, brokers accounted for 61% of all new mortgages sold.