Powered by MOMENTUM MEDIA
the adviser logo
Broker

Broker commissions tipped to rise

by reporter2 minute read

Broker commissions will eventually increase, one aggregation head has claimed. Speaking to The Adviser, nMB’s managing director Gerald Foley said he could see broker commissions increasing – just not in the immediate future.

According to Mr Foley, margins are returning to lending, so there is no reason for Australia’s banks and non-banks to hold back on lifting broker commissions.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

“There is continual pressure on the banks to grow market share and as long as they can remain competitive in terms of product and price, I think there is some room to move,” he said.

“It will be a brave lender to lead that charge, but once it does, the rest will find a way to follow.”

Vow’s chief executive Tim Brown agreed that commissions would increase, but said he believes lenders will use them as a lever to drive more business from time to time, rather than make one 'official' movement.

“I think there will be periods where lenders will lift commissions for a certain amount of time for market share reasons or for a promotion,” he said.

“We’re seeing that happening now, where a couple of the banks are running special promotions and they’re upping the upfront [commission] for a period of time.

“Obviously it’s very competitive out there now and everybody’s fighting tooth-and-nail to get market share.”

coins stacked money  w

JOIN THE DISCUSSION

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

MORE FROM THE ADVISER

ABA finalists

Finalists for 2022 Australian Broking Awards revealed!

Run with the support of principal partner NAB, the Australian Broking Awards – which is now in its 12th year –...

READ MORE
Anthony Albanese new ta

Home owners in flood regions offered cash payments

Speaking at a press conference on Wednesday (6 July), Prime Minister Anthony Albanese confirmed that residents in the...

READ MORE
Sam Henley

Fifo invests further into BDM team

According to Fifo Capital (Fifo), Sam Henley joined the lender as its senior business development manager –...

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