Earlier this month, the long-awaited Final Report of the Royal Commission into misconduct in the Banking, Superannuation, and Financial Services Industry was delivered, proposing changes – amongst other recommendations - into the way mortgage brokers are remunerated.
With over 59% of all home loans in Australia underwritten by mortgage brokers, the findings from Commissioner Hayne’s report would see a significant shake-up to the way borrowers access mortgage lending. In the midst of all the media hype around the report, Mortgage Express would like to remind its customers that the service we provide to you, our valued customers, has not changed.
“Let’s Kill Competition and Help Banks Make Profit”
-Said No-One Ever
Here We Are
Following the release of the report, Mortgage Express reiterates that it is business as usual for our mortgage brokers and that no changes have been made as yet. Before the commission’s recommendations become a reality, much legislation needs to be passed.
Mortgage Express Australia National General Manager, Vicky Devine said, “We want to assure our customers that we are still here, nothing has changed for us. And we’ll continue to provide the outstanding service we’ve become known for, providing unbiased advice and working towards the preferred outcome for our customers always!”
Mortgage brokers have the widespread support of their customers with many agreeing that the recommendations in the report will decrease competition and essentially make the big banks the winners.
Finance Brokers Association of Australia managing director Peter White said getting rid of trail commissions could increase interest rates.
“This could force up-front commissions to rise in order to compensate for reduced revenues to brokerages, which in turn will lift interest rates and make housing affordability more difficult,” Mr White said.
Mortgage and Finance Association of Australia CEO Mike Felton said, “We believe the decision makers in considering any significant policy changes – must hold competition, consumer choice and access to credit services as their highest priority, in order to protect outcomes for consumers”
Prime Minister Scott Morrison voiced his support for the broker channel and the important role brokers play in the mortgage market at his address at the National Press Club on 11 February 2019.
The Prime Minister said, “We want to make sure that Australians still have access to that service. We have the Productivity Commission report on mortgage brokers which basically says: ‘If you start turning that industry on its head, you just hand the power back to the banks’.”
Business As Usual
A number of positive findings were highlighted in the report, with the mortgage broker industry being praised for the contributions that brokers make to lowering borrowing costs and ensuring fair competitive practices for the best interest of their customers. Until such time as legislation is passed, mortgage brokers continue to provide ongoing support for their customers.
As well as advice around structuring new and existing home and investment loans, Mortgage Express brokers can assist with annual home loan reviews, restructuring and refinancing advice, and negotiating on your behalf for your benefit not the banks.
If you have any questions or concerns about the report and the proposed changes, please contact Mortgage Express, or if you’d like to join the join the fight in support of mortgage broking, please visit this website.
While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. A Disclosure Statement is available on request and free of charge.
Finservice Pty Ltd (Mortgage Express) is authorised as a corporate credit representative (Corporate Credit Representative Number 397386) to engage in credit activities on behalf of BLSSA Pty Ltd (Australian Credit Licence number 391237) ACN 123 600 000 | Full member of MFAA | Member of Australian Financial Complaints Authority (AFCA)