Less choice and even less competition


Get behind the fight to save the mortgage broking industry.

Say no to less choice and higher interest rates, and say yes to customer satisfaction and small business.

The mortgage broking sector is currently under threat. Despite the recent banking royal commission uncovering misconduct and even criminal activity within Australia’s big banks, that same royal commission has proposed potential changes that would suffocate the mortgage broking channel and force Australian home loan consumers to be at the mercy of the big banks. It doesn’t make sense.

Last year, mortgage brokers helped hard-working Australians secure finance for 59.1% of the country’s home loans.

By removing competitive pressures the big banks will have greater freedom to raise interest rates.

In 2017-18, the Financial Ombudsman Service received 11 complaints regarding mortgage brokers, compared to 11,396 regarding banks.

How will squashing the mortgage broking channel and pushing home loan customers into the hands of the big banks improve outcomes for borrowers? It won’t.

Brokers review and support various big, small and non-bank lenders to find the home loan that suits the borrower.

Killing the mortgage broking industry will have a significant impact to the economy, from mortgage brokers to aggregators to small bank and non-bank lenders, and support staff.

Non-major banks distribute 70% of their home loans through brokers.

Every way you look at it, suppressing the mortgage broker channel just gives more power to the big banks and gives borrowers less choice.

Why shrink the lending pool and limit access to credit?

We can’t understand it either. Better results for borrowers come from greater choice of home loan products and healthy competition between lenders, preventing the big banks from hiking home loan rates.