Most Australians are in the dark about how much commission mortgage brokers are earning for their home loan advice, a survey has revealed.
Despite brokers collecting more than two billion dollars in commissions last year, more than eight in 10 consumers are unaware of the amount brokers were receiving, while 24 per cent did not know the commission structures were in place at all, according to the research from mortgage contest website flongle.
However, for 65 per cent, the commission information is of little consequence because "it didn't affect them" and the vast majority (86 per cent) were confident the broker was "on their side" with unbiased advice.
Flongle founder Michael Lee said the figures showed that there were wide misperceptions about how mortgage brokers earn their income.
"Clever marketing from the big brokers and industry associations tells borrowers that this commission doesn't affect them, as it's paid by the lender," Lee said.
