Have you been following the updates since Commissioner Hayne passed down his 76 recommendations from the banking Royal Commission?
There has been a tremendous back lash from the mortgage broker industry about the recommendations and the potential impact it might have on the industry should they be implemented.
We CONSUMERS will ultimately pay the price should these recommendations take effect as they will eliminate healthy competition amongst lenders which will ultimately impact us – the borrowers.
Interestingly though, yesterday in parliament during question time…
Independent MP Kerryn Phelps asks Josh Frydenberg how he will protect consumers from changes to mortgage broking, recommended by the banking royal commission, and ensure the big banks do not benefit.
The Treasurer says: “I’d like to thank the member for Wentworth. She says she was a Liberal and how she is talking like a Liberal.”
“The reality is, there are 16,000 mortgage brokers, Mr Speaker. They employ around 27,000 people. And the coalition is standing with mortgage brokers against those opposite who want to disrupt their business model.
“We will not abolish mortgage brokers like those opposite, who, if they implement, every single one of the (royal commission’s) recommendations as they promise, we will see the big banks benefit at the expense of small businesses, namely the mortgage brokers.”
Remember we have an election coming and as much as I feel these comments are good news for consumers, I am expecting to see a political dance on important issues such as this until the election is over and the dust settles. Then we will really see what the impact will be.
If however, the coalition stay in power, then it will be great news for consumers and healthy competition. As for Labor, I’m following with a keen eye on what they plan to do if they get into power as they seem intent on making changes and I don’t see them being for the good.
Take Negative Gearing for example. Independent experts and research groups have already come out saying this would be a bad thing for the economy and would push up construction costs making it harder for the average Australian to invest in property. Remember that 90% of people that negative gearing changes will affect are hard working class Australians.
I think what’s important here is that whatever eventuates from the fall out of the banking royal commission, that us consumers are not focused into having to give the major banks more power over how we borrow money. They are already making billions of dollars in profit, so healthy competition won’t hurt.
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