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As reported on ABC News, home loans continue to dominate the profits for banks but recently, the profit margins have been decreasing due to customers preference for mortgage brokers when finding a loan for their homes. Approximately 75 per cent of new home loans are now negotiated through mortgage brokers, continuing to disrupt the historical relationship between customers and banking institutions. Customers are now more likely to rate loyalty as a low priority when trying to find a cheaper home loan as compared to customers in the past therefore driving competition in the home loan market. With banks paying up-front and trailing commissions to brokers, the fees incurred by banks have increased, resulting in reduced profitability.

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