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Broker confidence in commissions has risen to more positive territory, with half the industry convinced that current commission levels are sustainable for the industry.
According to The Adviser’s latest sentiment survey, broker confidence increased by 12 per cent when compared to the first quarter of the year.
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The Adviser’s second quarter survey found 50 per cent of brokers agree current commission levels are sustainable for the industry, compared to 38 per cent in the first quarter of the year.
This result, however, most likely reflects a shift in broker attitudes towards other areas of the industry and away from commissions, LoanKit CEO Simon Dehne said.
“Brokers could be feeling more positive about commissions because they are facing challenges in other areas, such as trying to grow volumes in a flat market,” he said.
The positive sentiment is most likely the result of competitive lenders driving down rates and maintaining broker volumes, Auspak’s Gerard Hansen said.
“Discounted rates have created a false economy that is keeping things positive,” he said.
