As a result of banking royal commission findings, Director of MoneyQuest Dubbo Matt Wright said the industry faces potential policy changes that could make the mortgage broker channel unsustainable, drastically reducing competition, choice and access to credit in home lending, while delivering a windfall for major banks.

"Competition is good, I like having other banks in town and other brokers it keeps everyone sharp and focused on doing the right thing by the customer," Mr Wright said.

"The imposition of a blanket ban on commissions (starting with the removal of trail from 2020) would significantly lower broker remuneration, have a devastating effect on the broking industry, kill competition and drive up the cost of borrowing for millions of Australians.

“Consumers can rightly feel disappointed at this outcome of the Royal Commission. The recommendations on brokers represent a massive win for the big banks."

Mr Wright said the Royal Commission was set up to protect people from big bank power but has simply entrenched it further. 

"How mortgage brokers can be front and centre of the recommendations is inexplicable to me," he said.

“As reviews by ASIC, the ABA and the Productivity Commission have found, brokers, drive competition by providing a shopfront for smaller lenders, particularly for rural and regional customers like those in Dubbo.

"I fail to see how decimating the broker channel, leaving Australians with a handful of lenders to choose from, is good for competition, or good for customers."