Powered by MOMENTUM MEDIA
the adviser logo
Broker

Brokers divided over royal commission

by Reporter4 minute read
Brokers divided over Royal Commission

Australian mortgage brokers are indecisive about having a royal commission into the banking sector, with less than two-fifths supporting it, a survey has revealed.

A survey of Australian mortgage brokers conducted on behalf of MyState Bank has found that the third-party channel is “split” over the issue of having a royal commission into the banking sector.

According to the survey, which was conducted prior to the government’s announcement last week, 38 per cent of respondents were in favour of a royal commission.

From those in favour of an investigation into the banking sector, 14 per cent said that it was “definitely needed” while 24 per cent said that it was needed “on balance”.

Advertisement
Advertisement

Conversely, of those against a high-level inquiry into banking, 17 per cent of brokers believed that a royal commission would be unnecessary and 24 per cent suggested that there were “other more important issues to address”.

Twenty per cent of brokers were undecided on the issue.

In the same survey, brokers were asked what factors they believe had led to a slowdown in housing and apartment sales in Sydney and Melbourne.

Thirty-five per cent of respondents stated that house prices had reached an unsustainable point and were “too high” for first home buyers and low-income earners.

Moreover, 34 per cent of brokers believed that supply exceeding demand was the cause of reductions in house prices, while 14 per cent stated that price reductions were an inevitable result of the market peaking.

According to 12 per cent of respondents, a cooldown in investment from foreign buyers contributed to changes in the market, and 5 per cent of brokers viewed that potential buyers were awaiting the market’s next move before resuming activity.

MyState Group executive of broker distribution Huw Bough claimed that the data indicates that brokers are optimistic about the property and mortgage market and view changes in market conditions as mere “adjustments”.

[Related: Royal commission will look at remuneration]

 

 

 

money

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

PhilipLowe mb

RBA attempts to curb runaway inflation

On Tuesday (5 July) the Reserve Bank of Australia (RBA) announced at its monetary policy meeting it will increase the...

READ MORE
flood qld suburbs ta

Home loan support offered to NSW flood victims

Widespread persistent heavy rain over large swathes of NSW over the weekend and into Monday (4 July) has caused major...

READ MORE
Dr Jane Rennie CPA

Accountants to decline ‘capacity to repay’ requests

The leaders of CPA Australia, the Institute of Public Accountants (IPA), and the Chartered Accountants Australia and...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more