The Government is going to be making some very important decisions regarding regulation and remuneration of Australian mortgage brokers. Some, including a representative from one of the big banks, have called for commissions paid to brokers by banks and lenders to be scrapped and for everyday Australians to instead foot the bill.
Brokers are one of the keys to a successful campaign to curb excessive regulatory intervention by politicians post Royal Commission. Remember, the Commission will make recommendations to government. It will be the government and opposition which decide what the future looks like and you should have a say about what that future looks like.
As a collection of small businesses and everyday Australians, the voice of brokers risks being lost in the conversation.
Here are a few facts that can be brought to the attention of your local MP:
- The mortgage broking industry contributes $2.9 billion to the Australian economy each year and supports more than 27,100 (full-time equivalent) jobs.
- Banks recognize that the Royal Commission represents a great way to consolidate business back to them. They would love it if the broking channel dried up and people didn’t have a choice anymore. That would mean worse outcomes for borrowers.
- The Net Promoter Score (NPS) customer satisfaction measure of Mortgage Brokers is in excess of +70 which is outstanding and industry leading.
- Mortgage brokers bring competition to the mortgage industry by improving access to lenders that are not major banks or their affiliates.
- Three in 10 mortgages arranged by mortgage brokers are in rural and regional areas, improving access to home lending for rural and regional Australians – in locations where there may be few or no bank branches.
We need to work together to defend our right to provide Australian homebuyers with competition. Let’s keep up the pressure and remind Australia why mortgage brokers are so valued.
Watch the video below on news and trends about mortgage brokers, and how they help Australian homebuyers. It’s time to speak up, be heard and keep the competition alive.