Removing broker commissions will not reduce the interest rate...

Removing broker commissions will not reduce the interest rate paid by consumers.

With 60% of loans settled by MBs, not only are they the huge outsourced sales arm for the banks, but they are doing a huge amount of the admin and processing work on behalf of the banks as well.

No MBs means banks have to bring this all back in-house, hire more staff, more mobile lenders and more back office support.Cost of loans goes up, no interest rate savings.

If fully implemented the business model for MB is dead, some will still exist but they will be specialist brokers for individuals with complex needs.