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Over half of Australian mortgages are written through a mortgage broker.

The mortgage broking industry is under review.

THE FEDERAL GOVERNMENT HAS ASKED THE REGULATOR (ASIC) TO EXAMINE THE MORTGAGE BROKING SECTOR.

ASIC is seeking to understand how mortgage brokers work with Australians looking to find a home loan. We ask you to have a read of our website and lend your support to the sector by endorsing the industry that helps Australians find a home loan that suits their individual circumstances every day.

Mortgage brokers:

  • Provide real choice between lenders
  • Do the legwork
  • Do not charge their customers a fee for their service
  • May negotiate a better outcome
  • Keep competition alive
  • Help at a time and place that suits the customer

One of the areas to be reviewed is the way a mortgage broker is paid. With the current commission model the lender pays the broker. We believe this is fair and would disagree with changing the model to make a mortgage broker charge their customer a fee for their service. Why make the customer pay when the lender, who is making significant profit from each home loan, is currently paying?

Many of Australia’s smaller lenders rely on mortgage brokers to act as a distribution network for their products. The loss of the broker based distribution network would put these lenders at a major disadvantage to the large banks and result in a significant reduction in competition in the mortgage sector, to the detriment of consumers. Every mortgage customer would pay for reduced competition throughout the life of their loan.

In a fee for service model real choice and competition would be lost, which is not in the interests of the consumer.

Real choice and competition would be lost which is not in the interests of the consumer.

 

VOICE YOUR SUPPORT FOR THE MORTGAGE BROKER SECTOR BY CLICKING HERE TO SEND A MESSAGE TO YOUR LOCAL MP. ASK YOUR FRIENDS TO DO THE SAME.

Mortgage broking is a professional, highly regulated industry. Disclosure, trust and high quality service are central to my relationship with my broker and are fully supported by the current regulatory regime.

Why should you
get involved?