An industry poll has been launched to understand the key issues impacting the mortgage and finance broking industry leading up to the 2022 federal election.
With a federal election expected to take place before the end of May 2022 – and broker remuneration and the impacts of best interests duty set to be reviewed – the outcome of the upcoming election is also likely to have a significant impact on the mortgage and finance broking industry.
To better understand the perceptions, opinions and priorities of the mortgage and finance industry, market research firm Momentum Intelligence has launched an industry-wide poll to measure and voice sentiments and concerns of participants.
Momentum Intelligence’s head of strategy Michael Johnson commented: “This poll is an opportunity to explore industry-specific issues and insights as a vehicle to bring these issues to light ahead of the election.”
“It’s an opportunity for this industry to voice what is important to them at a professional and personal level so that their ideas can be amplified and heard by those in Canberra,” he added.
The impact of elections on broking
Federal politics has the ability to rapidly and significantly impact the course and trajectory of industries, this is particularly true for those in financial services.
When the last federal election was held in 2019, the mortgage and finance industry was on tenterhooks to find out the fate of broker remuneration structures, after the two major running sides (the Liberal-National Coalition and the Australian Labor Party) had opposing stances on how broker remuneration should change.
While the banking royal commission had recommended that brokers not only be subject to a best interests duty, but also move to a fees-for-service model (with trail being abolished), there were major concerns regarding the impact this would have on the viability of the broker channel.
Indeed, the inaugural Consumer Access to Mortgages report conducted by Momentum Intelligence at the time found that nearly two-thirds of borrowers (58 per cent) said they would not be willing to pay a broker a fee, while a whopping 96.5 per cent of broker clients said they wouldn’t be willing to pay $2,000 for the service.
A huge amount of advocacy and political engagement had taken place ahead of the 2019 election, with a national campaign also being launched by the Mortgage & Finance Association of Australia (MFAA), along with several aggregators and lenders, to demonstrate the competition and choice that brokers provide and outline what the landscape would look like without brokers.
The Coalition won strong broker favour after it said it would delay any decision on fundamentally changing the structure of broker remuneration until 2022, when a review of broker remuneration would be held.
Meanwhile, the Australian Labor Party said at the time that it would look to ban trail commissions for new loans from 1 July 2020 and introduce a cap on commissions at 1.1 per cent.
How to take part in the poll
The Momentum Intelligence poll is open to all mortgage and finance industry professionals, including brokers, lenders and service providers.
The results of the anonymous survey will be aggregated and reported back to the industry via The Adviser.
The poll has 10 questions and will take no longer than five minutes to complete. In return for participants’ time, Momentum Intelligence is offering a $500 gift voucher to one randomly selected participant who provides their details to enter the optional prize draw.
If you would like to participate, you can follow the link below to contribute:
The survey closes on 15 December 2021.
[Related: Election 2019: What it means for brokers]
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