Aussies don’t know - or care - about mortgage brokers’ commissions
Most Australians are in the dark about how much commission mortgage brokers are earning for their home loan advice, a survey has revealed.
Despite brokers collecting more than two billion dollars in commissions last year, more than eight in 10 consumers are unaware of the amount brokers were receiving, while 24 per cent did not know the commission structures were in place at all, according to the research from mortgage contest website flongle.
However, for 65 per cent, the commission information is of little consequence because "it didn't affect them" and the vast majority (86 per cent) were confident the broker was "on their side" with unbiased advice.
Flongle founder Michael Lee said the figures showed that there were wide misperceptions about how mortgage brokers earn their income.
"Clever marketing from the big brokers and industry associations tells borrowers that this commission doesn't affect them, as it's paid by the lender," Lee said.
Recommended for you
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
