Home loan customers may need to pay mortgage brokers to save money

Home loan customers may need to pay mortgage brokers to save money y business reporter Daniel Ziffer Posted SatSaturday 9 FebFebruary 2019 at 6:07am Almost 60 per cent of Australians use a mortgage broker to arrange their home loans.(AAP: Lukas Coch) Borrowers may have to pay an upfront fee when their home loan is arranged, in a move applauded by consumer advocates but which mortgage brokers say would devastate their industry.

The new fee, one of the most contentious changes recommended by the final report of the Hayne royal commission, would kill off one of the key methods brokers are currently paid — an arrangement commissioner Kenneth Hayne rubbished as "money for nothing".

Currently, most brokers are paid an upfront commission by the bank that finances the loan. The banks then also pay an ongoing fee, called a trail commission, over the life of the loan.

Under the comm…

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