Slowdown may make banks love brokers: AMBL

"The lenders don’t pay brokers unless they give them business," David argues.

Not having to pay for brokers’ overheads will surely provide banks with a cashflow benefit.

"It is my opinion that in a contracting market, the mortgage broking channel will become a much more attractive channel for the lenders. After all, they will still have all of their fixed costs in maintaining the retail branch network and in particular mobile mortgage managers in a market that is contracting," he says

Rather than restrict their dealings with brokers, the banks are more likely to review the profitability of maintaining mobile mortgage managers and could well start laying them off, particularly if the slowdown turns out to be a lengthy one.

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