With the results of the 2019 Federal election confirming the Coalition is once again leading Australia, the mortgage broking industry is set to enjoy a bright future.
Let’s look at the facts.
1. No change to broker commissions
The Morrison Government has confirmed it will not prohibit trail commissions on new loans as recommended by Commissioner Hayne, but rather review their operation in three years' time.
This means your broking business will enjoy the certainty of both upfront – and trailing – commissions for at least the next three years, allowing you to earn both active and passive income.
2. Negative gearing to remain unchanged
With the Morison government in place, negative gearing and the 50% capital gains tax discount for investors is no longer under threat.
With the uncertainty over the future of negative gearing now behind us, Australians can continue to achieve their dream of investing in a rental property to take advantage of valuable tax breaks, and strong tenant demand.
Property is likely to remain a popular investment among Australians1, this will support demand for investment loans – a valuable source of revenue for your broking business.
3. First home buyer numbers are set to grow
The Morrison government’s pledge to introduce a First Home Loan Deposit (underwriting) Scheme2 will allow more first home buyers to enter the market with just a 5% deposit.
First home buyers are a major customer base for mortgage brokers, and the First Home Loan Deposit Scheme will shore up demand for property, and the services of mortgage brokers.
4. More instant asset write-offs for small business
But the instant asset write-off can also be an important source of revenue for your broking business.
Around one in three of a broker’s existing home loan clients are also small business owners4. Plenty of these businesses will need your help arranging finance for new plant and equipment to take advantage of the instant asset write-off.
This can be an important source of income diversification for you as a broker, adding another revenue stream to future proof your business.
To take control of your future, contact our Franchise Recruitment team for more information on investing in a Mortgage Choice franchise of your own. Talk to the Recruitment Team today on 1300 650 330.