You’ve probably heard about the Banking Royal Commission in the media over the past month. But rather than reading the final report’s 1,133 pages or 10,323 submissions, I have summarized how it’s findings, as they relate to mortgage broking, may affect you.

If the recommendations of the commission are fully implemented, it is likely that securing a home loan from all lenders will become increasingly difficult. Which should make a broker’s services even more valuable in the future. However, one of the general recommendations is to change the broking model so you, the customer, will have to pay for broking services. It is also likely that even if you, as the customer, go directly to the lender you could face a further increase in fees, each time you seek a better deal by refinancing or move your loan.

Obviously these changes, if implemented, will have a huge impact on the broking industry which, in turn will negatively impact consumers like you. Brokers have been a key pillar in offering consumers more choice of lenders than the ‘big four’ banks and it is this competition from other lenders which has driven interest rates down.

Rest assured, changes to the broking industry are yet to be legislated, and hopefully if these changes are confirmed, we brokers will be presented with an adequate timeframe in which to get things in order for our valued clients. Preferably before the changes preclude consumers from getting a better deal.

So, if you have any questions on how the Royal Commission’s recommendations may apply to you individually please give me a call to discuss.

Michael