The future of the Australian mortgage broking industry is not looking good... and this could have huge implications for consumers!
FACT || Mortgage Brokers play a very important role in providing competition in the Australian mortgage market... to lose their service would mean losing options, and that's a very scary thought indeed.
The war against mortgage brokers has a long history, and if you've been keeping up with the news in recent months, you would know it's been a hot topic. A few negative cases out of hundreds of thousands of positive ones, for an industry that has been genuinely helping clients for decades could send the industry into turmoil.
It's really no secret that the big banks would love to see the industry terminated. Why? Because it would, be great for them... Not so great for consumers on the other hand!
It's really quite simple - as more power is shifted to the big banks, they will get to control the interest rate that people pay, and unquestionably of course, they'll increase bank fees.
Data shows that brokers send 40% of business to the non-major lenders. That's because a good brokers works in the interest of the client, not the banks... They look for the best option for the clients circumstances, and often, that might be with a smaller lender. Take mortgage brokers out of the equation, and you'll be eliminating choice, or more importantly, competition... which is never a good outcome for consumers.