Shadow treasurer Chris Bowen says this is ‘a better way’ of achieving banking royal commission’s objectives
Labor has proposed a fixed-rate commission for mortgage brokers rather than accept the banking royal commission recommendation to apply user-pay fees to the service.
Commissioner Kenneth Hayne had recommended clients of mortgage brokers pay the fee, instead of banks, to eliminate conflicts of interest. Labor had originally pledged “in-principle” support to enact all of Hayne’s recommendations, but backed down on the mortgage broker fee issue on Friday, announcing it would not reverse the current fee payment scheme, and instead would cap rates at 1.1% of the property loan. The policy change follows lobbying from the mortgage broker industry.