Brokers have faced adversity in the past twelve months. The volatile economic environment has caused Australian consumers to flock to the safety of the major banks resulting in a shrinking market share, which has forced many brokers to leave the industry.
There has also been a large rise in the cost of funding, which has put upfront commission under scrutiny, leading to many of the major banks cutting broker commissions. Furthermore there has been the introduction of the minimum volume quota, which requires brokers to settle a certain amount of loans in a specific period to retain accreditation with certain lenders.
This report examines whether broker business has changed throughout this difficult period by examining data from RFI Broker surveys.
