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Bouris warns house prices will fall further under ‘user pay’ broker system

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Aussie home loan mogul Mark Bouris is warning the government not to accept proposed changes to the mortgage broking industry.

Royal Commissioner Kenneth Hayne made 76 recommendations, including switching mortgage broking payments from a lender pays system to a borrower pays system.

At the moment banks pay mortgage brokers an ongoing commission for organising a home loan, leading to claims brokers weren’t acting in the best interest of customers.

The changes would see the public pay an upfront fee to brokers but the industry says customers will bypass them, putting even more power in the hands of the big banks.

Yellow Brick Road Executive Chairman Mark Bouris tells Ben Fordham the change would hurt the public.

“In this country, 60 per cent of all Australians who get a loan to buy a house get it through a mortgage broker.

“If all those mortgage brokers just disappear off the landscape as a result of not being able to get paid… those Australian are going to find it tough.

“It’s the most complicated, complex time that I can ever remember, going back to the early 90s, for a person to borrow money. It is not easy.”

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