How will the findings of the royal commission affect everyone?
We need to remember that these are just recommendations and there’s a whole legislative process the government needs to follow before any of this becomes law.
From the looks of the recommendations there will be next to no impact to our financial planning business.
Mortgage brokers will be required to change their business models, moving to a fee for service rather than commission.
I hope everyone on here doesn’t get too caught up in all the noise over the coming days and if they need to chat to anyone don’t hesitate to reach out.
All the best.
There was already a strong indication that trail commissions in Mortgage Broking would be banned. I believe that the reason for doing so is flawed, however it is going to happen and we will have to be prepared for it.
It will definitely affect my ability to continue to employ staff but we have over a year to meet that challenge.
For the introduction of “fee for service” there is a long way to go and hopefully a very large amount of consultation to be undertaken.
On the surface. it will deter marginal borrowers from using brokers and could lead to poorer outcomes for people not given education and choice as well as reducing competition currently provided by non-bank lenders and regional banks
Time to work even harder to grow mortgage broker market share and prove the value proposition to everyone in our communities and governments alike