As well as having a cash flow impact, more than a quarter of brokers have said that clawbacks are negatively affecting their mental health, according to new data.
The Finance Brokers Association of Australia (FBAA) has reiterated its call to lenders and politicians to review commission clawbacks after new data revealed that the policy is impacting brokers both professionally and personally.
Currently, brokers can be subject to having their upfront commissions clawed back up to two years after a loan has settled. This typically occurs if a borrower refinances away from the lender within that time or discharges the loan for another reason (for example, selling their house).
While many lenders have updated their clawback policies recently (most reducing them down to 18 months), brokers have said that the policy is negatively impacting them both professionally and personally.
According to the FBAA’s Monthly Broker Poll, conducted by CoreData, of the 100 brokers who responded to the clawback questions, 84 per cent had experienced clawbacks in 2024.
Of these, mortgage brokers were the most affected (at 92 per cent).