There’s a lot of noise coming out of the Banking Royal Commission about mortgage brokers, the commissions they receive and their ongoing trailing income.
We’d like to ask, if as some are suggesting the mortgage broker model is changed to pay for service and abandoning trailing income what impact would it have on consumers in terms of home loan competition, interest rates, service levels, convenience and the cost for them to obtain a home loan ?
What impact would it have on the overall home loan industry?
If I had a crystal ball 🔮
I can only imagine that the Big4 would continue their current standard of care and interest rate margins would return to where they were before the broking revolution started by Aussie John.
Banks, the ABA and the Big4 basically commissioned the Murray inquiry and the Sedegwick report on behalf of their own interests to wrest back control of the mortgage market. If they manage to get their way, the consumer will be the biggest loser
If they move to a fee for service model competition will be reduced as major lenders will lead consumers back into branch land on the false pretense that they have their best intentions in mind. They do not. I have worked for majors. They push a small set of products on clients whose finances are as unique as their fingerprints. Bank employees have KPIs brokers dont. Think about that for a while.
Brokers are there to review your debt position at particular points in your life and steer you away from unhealthy money habits. To give you the best option that suits your requirements and objectives. To be a long term debt adviser. Banks are transactional not relational.... oh sorry they are. If you have millions in net wealth.