In a matter of weeks, the broking industry has gone from being on life support to having a major tick of approval from whichever party could form Government at the forthcoming federal election.
After some left-field recommendations from the banking Royal Commission, many feared for the future for mortgage broking and how it gives a choice of lender to so many home owners.
Yet, following some industry lobbying, both major parties have committed to a healthy mortgage industry – after some intense debate across the floor of parliament.
Proposals from both the Coalition and ALP will see trail commission removed and compensated by roughly a doubling of upfront commissions.
With questions asked in the House and interviews on prime time TV, the profile and reputation of brokers have emerged from the past few weeks enhanced. More Australians are aware of what brokers can do for them.
Momentum Intelligence research found that 96 per cent of customers are satisfied or very satisfied with their mortgage broker.
The mortgage broking industry contributes $2.9 billion to the Australian economy each year and supports more than 27,100 (full-time equivalent) jobs.
Year-on-year the number of home loans arranged by mortgage brokers has increased – this year reaching 60 per cent.
With changes announced recently by both parties, growth looks set to continue.