Brokers face changes to commission structures
While there is increasing evidence that Australia’s banks are clamping down on the commissions they pay mortgage brokers, there aren’t any signs of this in New Zealand, although all the major banks here are now Australian owned.
Monday, August 23rd 2004, 5:34AM
by The Landlord
But New Zealand Mortgage Brokers Association chairman Brian Berry says his industry should be expecting changes."There are always discussions going on about commission structures and there will be more of that going forward as we try and reinforce the sustainability of the industry," Berry says.
In particular, he points to the way the mortgage market has developed here to the point that borrowers no longer pay application fees and that bank’s commonly make a contribution towards borrowers’ legal and other costs.
"The whole profitability of the mortgage industry is on the back foot from the start. I just wonder if the quest for market share has been so strong that they’ve been prepared to give away everything."
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