Media Statements

The Finance Brokers Association of Australia (FBAA) says research from others has backed up its recent warnings of two economic storm fronts, and that they may be about to clash, forcing thousands of Australians out of their homes and sending rental prices soaring.

FBAA interim CEO Peter White AM said today’s expected RBA interest rate rise, added to this month’s predicted federal government changes to capital gains tax and negative gearing, could be “a toxic mix of pain and devastation.”

“Surely driving investors out of the market while at the same time increasing interest rates can only result in increased mortgage repayments and higher rental prices,” he said.

“I’m not an economist but it’s not rocket science that this affects lower income earners more than anyone else.”

Mr White said the FBAA warned before the last interest rate hike of added cost of living pressures due to the Middle East conflict, and this has now been supported by recent research from Finder showing that nine per cent of mortgage holders – or 297,000 people – would default on their mortgage if there are one or two more interest rate hikes.

“This is consistent with the FBAA’s research since 2021 before rates started to rise,” he said, adding that “we urged the RBA to start increasing rates more gradually at that time but no one listened.”

The association last month also called on the Federal Government not to make changes to capital gains tax and negative gearing, saying at the time that “the only result of any move to disincentivise investors, including those who own multiple properties, will be to increase the cost of living for anyone who rents.”

Now research from SQM Research has added weight to their claim, predicting a 20 per cent increase in capital city rents if the changes proceeded.

“These tax changes won’t lead to any positive effect but will mean that someone renting with the aim of buying a home won’t be able to save a deposit as easily, while many who are renting because they are already doing it tough will struggle to meet the increased repayments,” he said.

Mr White said there is still time to reverse course.

“These are not economic factors beyond our control, but decisions that are directly leading to darker times for many, and I hope both the RBA and federal government can change course before it’s too late.”

The interim CEO of the Finance Brokers Association of Australia (FBAA) has asked banks to support innocent Hai Money brokers who have been caught up in the ongoing fraud investigations and stand to lose their businesses.

Peter White AM said the situation was “fluid and messy” and endorsed the crackdown on fraudulent activities, repeating his call for anyone found to have been involved to be banned and prosecuted.

“The industry has to go hard on those who are tarnishing our reputation, and there can be no compromise,” he said.

However he also said there were Hai Money brokers who have done nothing wrong and should be treated as innocent until proven guilty.

“The FBAA has received calls from brokers who haven’t even written their first loan, and have lost their accreditation, and others who are distressed that there has been a blanket decision against all Hai Money brokers.”

Mr White says the association has an obligation to stand up for members who deserve natural justice.

“Overall, this is not about brokers from any one company or demographic, but about those, wherever they are and whoever they work with, engaged in sophisticated criminal activity.

“We can’t tar everyone with the same brush, and we must shine a light in the darkness and support those who have done nothing wrong and are running legitimate, honest businesses.”

He said he understands the complexity and the difficult role lenders and aggregators have in working out who is involved in the fraud, and asked them to do their due diligence to ensure those not involved were supported.

The Finance Brokers Association of Australia (FBAA) has urged the Federal Government to dismiss reports they are considering targeting property investors through changes to the capital gains tax discount and negative gearing.

The association says the proposed changes, reportedly to combat “intergenerational inequity” by forcing more investors out of the market and making housing more affordable for younger Australians, will have the opposite effect.

FBAA interim CEO Peter White AM said less rental properties can only drive up rental prices which have already risen significantly across Australia over recent years.

“While I commend the government for wanting to open up more housing, these changes will disadvantage the very people it seeks to help – younger Australians, as well as many other people on lower incomes.

“The theory that this will drive down the cost of housing to the extent where someone who can’t currently afford to service a mortgage and enter the property market, will suddenly be able to, is overly simplistic and ignores the many other factors in loan approval,” he said.

The FBAA’s 2023 ‘Australian mortgage and rental affordability survey’ conducted by research firm McCrindle found that even before today’s higher rental rates, those renting had to take on additional work, cut back on groceries and sell assets to afford the increased rental prices at the time.

It also found more than half of those renting had experienced higher stress, with others feeling socially disconnected and reporting increased family tension.

The association believes the only result of any move to disincentivise investors, including those who own multiple properties, will be to increase the cost of living for anyone who rents.

“Someone renting with the aim of buying a home won’t be able to save a deposit as easily, while many who are renting because they are already doing it tough will struggle to meet the increased repayments,” Mr White said.

He also pointed to the current shortage of rental properties.

“In many parts of Australia, there are 10 to 20 people or more looking at one rental property such is the lack of availability now, so why would we reduce that supply even more?”

The Finance Brokers Association of Australia (FBAA) says the current discussions around fraudulent mortgage applications should be approached from a position of integrity and perspective, ensuring that finance and mortgage brokers are held to the highest standards while the industry is not made a scapegoat.

FBAA interim CEO Peter White AM committed to support any initiative that mitigates risks of fraud and ensures that any broker who is found to have engaged in fraudulent practices is prosecuted.

He said the FBAA will do whatever it takes to be a part of the wider solution.

“Our industry is not immune to bad actors, but equally we must not accept any attempt to tarnish the overall reputation of brokers who are overwhelmingly of excellent character and go above and beyond to serve our clients and support lenders with integrity.”

Mr White said it appears that a key factor in suspected fraudulent activity was the involvement of organised criminal enterprises, which requires the focus of law enforcement and regulators.

“More information and data is needed to get the facts, and when this becomes available we will consider anything we can do as an industry body to play our part.”

However he said lenders must also be held accountable, and it was time for banks to finally re-evaluate some of their own practices including referral programs.

“The FBAA has been calling out some banks for ignoring recommendations from the Sedgwick report and the Hayne royal commission for many years, sadly to no avail.

“It is accepted that referral and introducer programs can be misused, and now they should be eliminated.”

Mr White also pointed to other bank practices and questioned how bank branches can approve applications previously rejected by brokers, “which we know happens.”

He supported calls for an industry-wide approach but said it must include all sectors.

“The finance broking sector has proven that we are prepared to work in the interests of the industry as a whole, even when it may adversely affect us.

“If others are also willing to make the tough decisions – and time will tell – we can combat the problem together.”

The Finance Brokers Association of Australasia (FBAA) has welcomed a recent poll that showed members are embracing AI technology, albeit cautiously, saying the industry must always be moving forward.

The association’s latest monthly broker poll found that 39 per cent of finance and mortgage brokers said AI was either “a core part” of their business, or they were “actively integrating AI across multiple areas of the business”.

FBAA interim CEO Peter White AM (who announced his retirement from the association this month) said it was encouraging that 80 per cent of those polled were using AI for client engagement and marketing.

“We know there are still many limitations in AI and I wouldn’t be rushing to use it for legal or compliance issues but it can increase efficiency and save time in other areas.

“Brokers must embrace rapidly changing technology on an ongoing basis, and as they do this sensibly and even cautiously, they won’t be left behind.”

The poll also identified that brokers under age 50 were twice as likely to use AI at work (54 per cent) than brokers over 50 (27 per cent) which isn’t surprising given that embracing rapidly changing technology is more difficult for some who have been doing things the same way for so long.

It also revealed that concern over data security was a key reason many brokers were hesitant to adopt the technology, likely based on findings that 12 per cent of those surveyed experienced a cybersecurity incident in the past year.

The FBAA has warned members not to input personal information of clients or the company into commercially available AI, and has pointed to the office of the Australian Information Commissioner, which warns on its website, “Once personal information has been input into AI systems, particularly generative AI products, it will be very difficult to track or control how it is used, and potentially impossible to remove the information from the system.”

Overall, the FBAA was pleased that among brokers who’ve used, tested or explored AI for daily tasks, 4 in 10 say it made a notable and positive difference to their business.

Read the full report HERE

Peter White AM, managing director of the Finance Brokers Association of Australia (FBAA) has resigned after 23 years with the association.

FBAA Board chair Brett Spencer has called the decision by Mr White “a difficult one for all”, but said he believes the “time is right for him and the FBAA.” 

“Peter has been a general for this association for over 20 years, and like all retiring leaders, he will be missed by many.”

Mr White said it had been an amazing journey. “I’ve met countless lifelong friends, and I’ve had the privilege of being a part of the tremendous growth and impact of the FBAA.”

“Today our association is a leading voice for our sector, respected by those at the highest levels of government and industry, and sought by national media for commentary due to our credibility and expertise,” he said.

Calling the FBAA’s efforts to combat the “unfair recommendations” of the Hayne royal commission one of the association’s greatest achievements, he thanked “the many who have served on our national board, our state teams, staff, and the thousands of members across the nation who support the association.”

Mr White explained the timing of his decision was based on his belief that he had achieved what he came to achieve in this role, noting that “change is not only good but necessary for any organisation, and brings new ideas and fresh vision.”

FBAA board chair Brett Spencer hailed the success of Mr White’s long tenure and said the FBAA will build upon his legacy to ensure it becomes a bigger and stronger association that represents its more than 14,000 members and the industry as a whole for the future.

He said the board is working closely with Mr White to ensure a seamless transition as they seek a successor CEO, and will provide an update to members next week.

The Finance Brokers Association of Australia (FBAA) has issued a warning to members to ensure all advertising complies with ASIC’s Regulatory Guide 234 – Advertising financial products and services (including credit): Good practice guidance.

In an email distributed across its national membership, the FBAA reminded members to only say things that are completely factual, ensure any claim can be substantiated, ensure that context and details included in any advertising are factually correct, and abide by professional advertising guidelines.

The FBAA has also backed comments by the Mortgage & Finance Association of Australia and its recent submission to ASIC regarding the update, noting that there is an obligation to speak as one voice when it comes to protecting the industry’s reputation and ensuring that finance and mortgage brokers are beyond reproach when it comes to abiding by regulations.

The FBAA’s regulatory compliance specialist David Carson said while he doesn’t expect the regulator to significantly change the guidance, it was a timely reminder to brokers that they are being watched.

“It looks like ASIC’s main objective in revising the guidance was to introduce more examples based on enforcement action they have been successful in,” he said.

Mr Carson said the solution for brokers was simple.

“Remember this simple rule: Only say things that are factually true, and if you say something that you cannot substantiate as factually true, then don’t say it at all.”

The Finance Brokers Association of Australia (FBAA) says a little research on the part of borrowers will help some avoid paying a higher rate even if the RBA lifts interest rates today.

FBAA managing director Peter White AM said many borrowers have no idea if the rate they are paying is the best available.

“Lenders often incentivise new business by offering lower rates to new customers than they provide to existing customers,” he explained.

“It’s their trick to make more money, but you don’t have to be a victim of what we term ‘lender loyalty tax’.”

Mr White outlined three simple steps to ensure you are paying the lowest repayments on offer.

“First see what other lenders are offering and compare this with what you are paying, and the best way to do this is to talk to a mortgage broker.

“There’s no charge for this, and a broker has access to lender options not available to the public direct, including non-bank lenders.”

“If you find a better rate than what are you are currently paying, contact your lender and ask for a lower rate. 

He said many borrowers aren’t aware they can renegotiate a rate during the term of a mortgage, but warned, “they won’t call you; you have to make the approach.”

Mr White said if the lender won’t budge, go back to the mortgage broker and refinance at a lower rate.

“Your broker will do everything possible to source a better deal for you that meets your specific needs, and unlike banks who act in the best interests of their shareholders, mortgage brokers are legally obligated to act in the customer’s best interests.”

He said that even a small increase of 0.25 per cent today will increase annual repayments by over $1300 on a loan of $700K, and more on larger loans.

A rate rise is also likely to pull back housing price increases over the short term.

“Any increase will lessen affordability, particularly as loan applications including refinancing are assessed at the rate plus three per cent due to the current serviceability buffer rate,” Mr White said.

“This means less borrowing capacity and downward pressure on house prices.”

Finance Brokers Association of Australia (FBAA) managing director Peter White AM has been named one of the world’s top 100 mortgage leaders.

Mortgage Professional Australia bestowed the prestigious accolade on Mr White in its Global 100 – Mortgage 2025 list.

Mr White said he was honoured to be recognised for his years of industry service.

“Mortgage brokers play an essential role in modern economies by helping people to build wealth and financial resilience through property,” he said.

“I’m proud to represent a profession that is in the engine room of economic opportunity for countless Australians.

“We have some of the world’s very best mortgage professionals right here in Australia and the FBAA will continue to advocate on their behalf.”

Mr White is also chairman of the Global Board of Governors of the International Mortgage Brokers Federation, which recently released a White Paper focused on future opportunities in mortgage broking.

Now in its seventh year, the Global 100 report showcases mortgage professionals from Australia, New Zealand, Canada, the United States and the United Kingdom.

It recognises individuals who are driving their organisations forward amid heightened competition, regulatory pressure and rapid technological change.

Mr White’s career in finance began in 1979 and spans major banks, finance companies, specialist brokerages and the non-bank sector.

He was appointed a Member of the Order of Australia in the 2019 Queen’s Birthday Honours List for significant service to the finance industry and the community, particularly in mental health advocacy and support for parents and carers of children with special needs.

“The FBAA will maintain its focus on elevating standards in mortgage broking amid a rapidly changing industry adapting to technological disruption,” he said.

“Along with the challenges we face, there are also huge opportunities in mortgage broking and we’re determined to ensure our members can seize them with both hands.

“Training, education and professional development are our cornerstones and we’ll continue to deliver the very best for our members in these areas.”

Finance Brokers Association of Australasia (FBAA) managing director Peter White AM has hailed the ongoing work of the Seniors Equity Release Industry Forum (SERIF), saying it highlights the need for collaborative national solutions to one of Australia’s biggest structural challenges.

“Not only do older Australians require funding for a dignified, secure retirement, but reverse mortgages present finance and mortgage brokers with a great opportunity to diversify,” he said.

However he pointed out that reverse mortgages are different to a typical home loan, and “specific knowledge is required by brokers on how to successfully tap into this growing market.”

SERIF convened most recently in November, bringing together key sector stakeholders including the FBAA, reverse mortgage lenders, equity release providers, specialist broker groups, UNSW Sydney, an aged-care advisory expert, the AIOFP and Deloitte.

“Through SERIF, the FBAA is intensifying efforts to educate government, brokers, and the broader industry on reverse mortgage lending and seniors’ equity release products, while also raising public awareness of their benefits,” Mr White said.

Delegates at the November meeting were presented with demographic data indicating strong future demand for these products, with Darren Moffatt, Director of Seniors First, pointing out that equity release should be recognised as a powerful national tool—not a niche product.

Chair of SERIF Stephen Rasmussen said Australia is facing a retirement savings shortfall of unprecedented scale, yet many retirees are sitting on millions of dollars in home equity.

“Our message to government, industry and the community is that responsible equity release can close that gap without forcing older Australian homeowners to downsize, let alone struggle in funding their retirement,” he said.

“FBAA is proud to be part of an industry leading forum at the forefront of efforts to protect and maintain standards in lending and broking in the reverse mortgage and equity release markets.”

Mr Rasmussen said that with the support and guidance of the FBAA, SERIF will continue to play a key industry leadership role, as the reverse mortgage and equity release sectors embark on a new era of growth.