(Australian Associated Press)
GOVERNMENT ACTION ON MORTGAGE BROKERS
* There are 16,000 mortgage brokers across Australia, employing more than 27,000 people.
* 60 per cent of all Australian residential mortgages are settled by brokers.
* No ban on trail commissions on new loans
* Instead, a review will be conducted in three years time by the Council of Financial Regulators and the Australian Competition and Consumer Commission
* Review to consider future of upfront commissions
* Value of upfront commissions will be linked to the amount drawn-down by borrowers
* “Best interests duty” will legally obligate mortgage brokers to act in the best interests of consumers
* Ban on campaign and volume-based commissions; as well as a two-year limit on claw-back, starting from July 1, 2020.