Brokers face changes to commission structures

But New Zealand Mortgage Brokers Association chairman Brian Berry says his industry should be expecting changes.

"There are always discussions going on about commission structures and there will be more of that going forward as we try and reinforce the sustainability of the industry," Berry says.

In particular, he points to the way the mortgage market has developed here to the point that borrowers no longer pay application fees and that bank’s commonly make a contribution towards borrowers’ legal and other costs.

"The whole profitability of the mortgage industry is on the back foot from the start. I just wonder if the quest for market share has been so strong that they’ve been prepared to give away everything."

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