Brokers originate more than half of all home loans in Australia

Resimac backs brokers following Royal Commission recommendations


With the final report from The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry now public, the message that more must be done to protect borrowers has been heard loud and clear.

Non-banks have always played a role in providing consumers with greater choice, many of whom have voted with their feet; switching from the big four banks to non-bank lenders as a result of the Royal Commission.

With more than 30 years experience delivering home finance solutions to customers with a variety of needs, Resimac works in partnership with brokers to deliver competitive loan products.

While many of the recommendations from the report clearly advocate for the rights and protection of borrowers, Resimac has reservations regarding the recommendations to change the way brokers earn their income.

We wanted to take the opportunity to talk to our customers and those considering taking out a loan with Resimac about the topic and our position on it.

The proposed changes would see a ban placed on trail commissions paid by the lender to the broker, who would instead receive an upfront fee paid for by you, the borrower.

Brokers originate more than half of all home loans in Australia and are critical to ensuring borrowers can choose from a range of products and providers. They also play a critical role in helping the customer to understand the loan product and features. Finally, they play a crucial role in the loan application process, to ensure that the customer's loan application meets all requirements for approval.

Brokers can help you select a loan and manage the process through to settlement

Brokers can help you select a loan and manage the process through to settlement

Australia’s network of brokers also ensures a level playing field for lenders of all sizes, especially those without a branch network.

With such a large influence on the market, brokers force the industry to be competitive by offering consumers alternatives to the big banks.

Resimac believes that the current broker remuneration structure is in the best interests of the consumer. It provides consumers with access to loans from the big and small lenders and accordingly stimulates competition within the lending market. However, the proposed changes threaten the viability of the mortgage broking sector. In turn, this jeopardises the level of competition in the mortgage industry, penalising consumers who could end up paying more for mortgages.

Non-banks have always played a role in competitive offerings and providing consumers with greater choice. This customer-centric approach has long been embedded in Resimac, the success of which is evidenced by our high levels of customer satisfaction, and word of mouth and broker referrals.

Resimac will always support regulatory changes and recommendations that will improve conduct in the industry and make borrowing safer and fairer for our customers.

Along with a number of other industry stakeholders including the major banks, we contributed to the Combined Industry Forum (CIF) package released in December, proposing changes to remuneration be made in the interest of the customer. We strongly support the six principles of the CIF package which includes a carefully managed broker commission structure. This approach achieves better customer outcomes and improved standards of conduct, while continuing to promote competition in the Australian mortgage market.

We will be working closely with the industry to help lawmakers understand the consequences of the Royal Commission recommendations and ensure any changes made really are in the best interest of you, the customer.


What can you do?


The Mortgage & Finance Association of Australia (MFAA) is conducting a petition to ensure policymakers understand the weight of support behind the mortgage broking sector. If you’d like to have a say, you may like to sign and share the petition, which is available at


The opinions expressed in this article are the opinions of the author(s) and not necessarily those of Resimac. The above is general commentary only and is not advice tailored to any individual’s financial situation. We recommend seeking advice from a mortgage or finance professional before implementing changes relating to your finances.