Imagine a cheaper mortgage if you went straight to the bank, not a broker
Banks pay broker 65 basis points upfront commission, which on a $1 million mortgage is $6500. What if banks cut out the broker and shared savings with the borrower?
If the Reserve Bank of Australia monetary policy board cuts cash rates this week as economists expect, you can bet the big four banks will instantaneously pass them on to mortgage customers.
Why? It’s the cost of doing banking in 2025. Treasurer Jim Chalmers was straight on the phone to the bank chief executives when the RBA started the cuts cycle in February, and bank bosses got the message.
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Anthony Macdonald is a Chanticleer columnist. He is a former Street Talk co-editor and has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@afr.com
