Please sign our petition and contact your local Federal MP in support of mortgage broking
Potential reforms to broker commission are currently being discussed which could result in a blanket ban on commissions (upfront and trail) and the introduction of a customer fee-for-service of thousands of dollars. If enacted, these changes could make the mortgage broker channel unsustainable, forcing customers back to the big banks with large branch networks, and cutting customer access to smaller lenders and credit.
An alternative proposal (the Netherlands model) not only has the customer paying a new fee of thousands of dollars every time they access a broker, but also every time a customer walks into a bank branch to arrange a home loan.
This is nothing more than a massive new tax on borrowing.
Taking choice away from customers by ending competition in the home lending market would likely result in:
Increased fees and interest rates for customers – as banks seek to restore their declining interest margins and increase profit without intense competition to keep prices down
Diminishing availability of credit – especially for customers in regional and rural Australia, where few branches remain, and for lower income customers with more complex credit needs such as first home buyers
The end of trade for up to 17,000 small businesses, and the resultant loss of up to 27,000 FTE jobs in Australia
Mortgage brokers are critical to competition in the home lending market in Australia.