As you know, the Royal Commission has recommended changes to the way Mortgage Brokers are paid.
So how do the changes effect you?
Mortgage Brokers are still paid by the banks
The Royal Commission recommended Mortgage Brokers be paid by the Borrower. However, this recommendation has not been adopted by the Government, and will be reviewed in three years’ time.
This means Mortgage Brokers will still be paid by the banks, and not paid by the Borrowers.
People are using Mortgage Brokers more than ever
The Royal Commission uncovered massive misconduct by the Banks. But there was no misconduct by Mortgage Brokers.
In fact, in December 59% of all new home loans were by Mortgage Brokers – this is the highest market share for Mortgage Brokers ever recorded.
Also, recent research has shown 95% of borrowers are either satisfied or very satisfied with the service they received from their Mortgage Broker.
My ongoing service to my Clients
The Royal Commission recommended Mortgage Brokers should not receive ongoing trail commissions that are used to provide an ongoing service to their Clients.
The Government will adopt this recommendation from 1st July 2020.
Importantly, I will continue to give my Clients ongoing service into the future to make sure their home loan is always competitive.
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