Media Statements

The Finance Brokers Association of Australia (FBAA) says new data by comparison group OurTop10 that shows an 18 per cent increase in national mortgage default risk is deeply concerning, but highlights growing financial pressure facing Australian households.

FBAA CEO Leo Gagic has urged borrowers under pressure to seek help before they miss a repayment.

“These findings are not unexpected, as our own published research dating back to 2021 found that thousands of borrowers were vulnerable to even modest interest rate increases after a prolonged period of low interest rates,” he said.

Mr Gagic said the rising risk of mortgage default reflects the combined impact of higher interest rates over recent years and escalating living costs, with many households reaching a financial ‘tipping point’ after years of drawing down savings.

To those currently impacted, he advised to “be open and honest about your circumstances and contact your lender as early as possible. Don’t wait until you have missed a payment.”

“Explain your situation and ask to speak with the lender’s hardship team.”

Mr Gagic noted that lenders may be willing to negotiate a more competitive interest rate or provide temporary relief measures such as reduced repayments, a repayment pause, an extended loan term, or a loan restructure.

“Clearly outline what has changed, what you can realistically afford, and provide any supporting information requested.

“This can help you and your lender agree on a sustainable arrangement that gets you back on track.”

He added that borrowers who are unable to reach a suitable outcome with their lender should consider speaking with a mortgage broker who may have other options.

“Brokers are here to help and have access to a wide variety of lenders, including many that only deal through the broker channel,” he explained.

He said mortgage brokers are obliged by law to act in the customer’s best interest, and will seek to understand the circumstances of the borrower and access available options.

“Lenders often can’t provide a solution because they are limited to their products, but a broker can look for solutions that suit your individual circumstances.”

Mr Gagic said his message to borrowers facing mortgage stress and default is not to panic but seek practical solutions.

“Start the conversation early because there may be more options than you realise.”

The Finance Brokers Association of Australia (FBAA) has responded to new rental market data* showing soaring rental prices by urging the federal government to swallow its pride and change course before it’s too late. 

FBAA CEO Leo Gagic said the latest figures from PropTrack showing national median rents reaching another record high reinforce the concerns the association raised even before the changes to capital gains tax and negative gearing were announced at the last federal budget.

“We warned that discouraging investors would increase costs for Australians who rent, and we are now seeing this happen exactly as predicted,” he said.

“The changes that are decreasing the supply of rental availability while demand is increasing are hurting the very people, they were supposed to help, including Australians on lower incomes, single parents, and aspiring first home buyers.

“How does making it harder for Australians to save a deposit improve housing affordability?” he asked.

“Every additional dollar spent on rent is a dollar that cannot go towards buying a home.”

Mr Gagic said the government must now admit that the policy settings are delivering the opposite of their intended outcome.

“In April, we challenged the government to be prepared to correct course if the CGT and negative gearing changes backfired.

“Now, we’re asking the prime minister and the treasurer to do it.”

*Source: realestatecomau-Market-Insight-Rental-Prices-June-2026.pdf

AUSTRAC has responded to enquiries by the Finance Brokers Association of Australia (FBAA) seeking clarity around whether new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws may have unintentionally captured finance brokers and intermediaries.

Following the updated regulations that took effect from July 1, FBAA CEO Leo Gagic contacted AUSTRAC over concerns that certain finance broking activities, including commercial asset finance broking, could fall within the definition of ‘debt financing’ as a designated service under the act.

Following high level discussions between the association and regulator, AUSTRAC has now acknowledged the validity of the FBAA’s concerns, confirming that item 4 of table 6 may be worded broadly enough to potentially include commercial asset finance broking, while also recognising its current guidance does not explain its interpretation of the scope of ‘debt financing’.

Mr Gagic said the association acted quickly to seek clarity for brokers and he is pleased with the response. 

“AUSTRAC has acknowledged our valid concerns and advised it is actively considering the issue before clarifying its position.”

AUSTRAC has also advised that it does not expect finance brokers to begin working towards compliance until it publishes its position on the scope of ‘debt financing’ under the legislation.

“If the outcome is that finance brokering activities are within scope of the AML/CTF Act, we recognise that affected businesses will need time to work towards compliance, including establishing AML/CTF programs and training staff,” the regulator said.

“Brokers do not need to do anything now, and we will update the industry when we know more,” Mr Gagic said.

Only days after its submission to the Australian Treasury consultation paper on unfair trading practices protections for small businesses, the Finance Brokers Association of Australia (FBAA) has commended ING for “taking an important step in the right direction.”

FBAA CEO Leo Gagic welcomed the lender’s changes to its clawback policy that eliminates clawback of broker commission after 12 months when the loan is discharged due to the sale of property.

Mr Gagic said ING’s new policy is a major move that should be followed by all lenders, but hopes that in the future the company will consider expanding it to include the first twelve months, as “brokers shouldn’t be penalised at all for reasons beyond their control.”

He also hailed ING’s broader relationship with mortgage brokers including its commitment that loans offered directly to customers are not at lower rates than those offered to the broking channel.

“Relationships like this are not only beneficial to both brokers and lenders, but to consumers through increased competition, better service and the knowledge that they will end up with the loan that best suits their circumstances,” he said.

Last week the FBAA announced it had contributed to the government’s consultation paper on unfair practices because the broking sector is made up predominantly of small businesses, and a broker’s livelihood and ability to function is inextricably linked to credit providers.

The submission listed clawback, net of offset, channel conflict, referrer arrangements and broker accreditation as areas that should be strengthened to better support brokers.

“We understand that these can be complex issues but I believe there is room for our industry to discuss these further with lenders,” Mr Gagic said.

“The relationship with lenders is important to me and the FBAA, and I want to always be considering ways we can do things better together.”

He said every step forward that makes it fairer for brokers is a good step, and “if other lenders do what ING has done, it’s a positive start.”

In a submission to an Australian Treasury consultation paper on unfair trading practices protections for small businesses, the Finance Brokers Association of Australia (FBAA) said it wanted to “bring to the government’s attention the unfair trading practices being engaged in by lenders in Australia.”

FBAA CEO Leo Gagic said the broking sector is made up predominantly of small businesses, and that “a broker’s livelihood and ability to function is inextricably linked to credit providers.”

“When managed appropriately, the lender-broker-consumer relationship is a mutually beneficial one, and this is the relationship we are seeking,” he said.

The submission highlighted a range of undesirable practices including clawbacks, pointing out that clawback was intended to stop brokers from being paid for misconduct or non-compliance but has since evolved to clawback being triggered because of borrower conduct.

Mr Gagic said some lenders base clawback calculations around the notion of cost recovery which is unfair and inequitable.

The association also tackled net of offset provisions, calling the way these are being implemented in practice “shocking”, and declaring “slow payments of commission offend the general principles of fairness which are reflected in the expectations set by government under the Payment Times Reporting Act obligations.”

Channel conflict was also raised, with the FBAA submitting, “The desire to build direct channel is causing poor marketplace behaviour including incentivising internal staff to poach and refinance deals originally introduced by third parties, differential pricing whereby a lender will offer an additional rate discount to a customer originally introduced by a broker if the customer refinances through a branch (triggering clawback against the introducing broker in the process) and misrepresentation to customers about the cost of broker commissions increasing the rate they pay.”

The FBAA repeated previous concerns around lenders supporting “unqualified sources and offering payments to accountants, lawyers and others under ‘introducer’ or ‘referral’ arrangements,” pointing out that the Hayne royal commission examined defective introducer programs and found them to cause significant consumer harm.

“The separation of allowing unqualified people to introduce customers for a substantial fee free of clawbacks and other consequences is resulting in anti-competitive behaviours and unfair outcomes against regulated small credit licensee businesses.”

Concern was also expressed over lenders cancelling accreditation of brokers who don’t meet minimum requirements, calling it “repugnant behaviour” that was “more about consolidating direct business over third party channel than protecting consumers.”

Mr Gagic said it was time to end anti-competitive and unfair commercial practices.

The Finance Brokers Association of Australia (FBAA) has requested an urgent meeting with AUSTRAC to discuss the practical implications of the recent AML/CTF reforms and their potential impact on brokers and intermediaries.

CEO Leo Gagic said while brokers should not rush into making major changes at this stage, there is genuine concern around whether brokers are captured by the recent AML/CTF reform measures and any specific obligations that may apply to broker businesses.

“Our industry is keen to understand its compliance responsibilities and ensure we are appropriately preparing for any regulatory changes,” he said.

FBAA regulatory compliance specialist David Carson said the association requested information prior to the July 1 changes because “the way their guidance has been drafted would appear that commercial asset finance broking could be defined as a designated service which would bring it under AML/CTF rules.

“We are not convinced it was ever the legislative intent to capture this activity so we remain hopeful that we can obtain clarification that it is not captured.”

Mr Gagic said AUSTRAC needed to allay the “significant uncertainty and confusion across the broker community regarding whether these changes apply to our sector, and if so, explain the extent of the obligations that may arise.”

“We have contacted AUSTRAC again to seek definitive guidance on these matters, and we note that other industry associations have done so as well.”

He said the FBAA was committed to supporting Australia’s AML/CTF framework and wants to work collaboratively with AUSTRAC.

“It is important for our industry to uphold best practices, for the sake of brokers and our customers.”

Mr Gagic said he hopes to be able to clarify the situation around the changes soon and will update members as soon as he can.

Re: SMSF legislative changes

“Brokers must accept that a new world has arrived in regard to SMSF residential lending.

Along with borrowers we must adjust, as this legislation along with changes to negative gearing and CGT have now been rushed through parliament with no industry consultation.

The FBAA warned against these changes and while we hope our predictions don’t come true, there is already confusion and distress. There is a strong likelihood that both homeowners and renters will incur losses and higher prices as a result of legislation that won’t help solve the housing crisis in any meaningful way.

Specialist lenders in this field are doing what they can to support brokers and borrowers through these changes. While all new residential lending and limited recourse borrowing arrangements are effectively dead from August 10, opportunities for SMFS commercial lending remain as well as residential refinancing opportunities where appropriate through the grandfathering provisions enacted. 

As always, finance and mortgage brokers will be at the forefront of helping borrowers through these changes, and my advice to brokers is to be proactive and contact affected clients. Impacted clients will rely on the trusted assistance and guidance offered by brokers more than ever before.”

Re: Interest rate announcement today

The following comments are attributed to Peter White AM, FBAA spokesperson.

“With interest rates expected to remain on hold today, borrowers should be proactive and not complacent. 

After multiple rate rises, it’s the perfect time for mortgage holders to pause and review their current situation.

Many Australians are unknowing victims of ‘rate creep’, where lenders raise rates for existing customers while offering discounted rates to new borrowers. This means you could be paying more in repayments than you should be.

It’s a competitive lending market and many borrowers are unaware they can approach their lender and ask for a rate reduction. If the lender won’t do this – and many will not as they assume you won’t leave – ask a mortgage broker to look at the market and assess your situation and the options available.

There are often better deals available, and brokers can access a wide range of lenders including non-bank lenders that don’t deal directly with consumers. It is also important to note that brokers are legally obliged to act in your best interests, whereas lenders are not and cannot as they sell products. As cost of living pressures mount, there may be savings available for borrowers who are proactive.”

Over recent months, the board has not only been conducting a search for a new CEO, but has been using this time of change to consider ways to increase our impact, build our industry to even greater heights, and provide even better support to our members.

While we celebrate what has been an amazing journey for the FBAA to date and will always hold to the values that have brought us this far, we believe that what is ahead must eclipse the successes of the past. This is even more important as we enter a dramatically different business environment shaped by ever-evolving technology.

This desire to embrace the new starts with our leaders, and it is with excitement that we announce two appointments that will help shape the future of our association.

New CEO appointed

After an extensive national search we are pleased to welcome Leo Gagic as the new CEO of the FBAA. Leo is a proven leader in the finance sector, with decades of experience working for Westpac, NAB, Liberty Financial, Telstra and most recently Access Mercantile Services, where as CEO he oversaw the transformation and international expansion of the company.

Leo holds a Bachelor of Business, Economics and Accounting and an MBA from Monash University, and has deep capability to lead large service-oriented organisations.

We look forward to working with Leo to lead the FBAA and our industry into greater levels of success and progress, with members’ needs as the key focus.

New chair appointed

We recognise that the direction, governance and vision of the FBAA starts with our board, and have appointed the Hon. Nick Sherry as a director, who will become the board chair.

A former federal minister for small business, assistant treasurer, and minister for superannuation and corporate law, and with a parliamentary career spanning 22 years, Nick brings a wealth of knowledge around the regulatory and political environment, as well as post-government leadership at board level across various financial services organisations.

Nick’s appointment will bring a new level of experience and authority to the FBAA.

Recognising Peter White AM

The FBAA is only in a position to look to new horizons due to the successes of the past, and we want to recognise and honour Peter White for his service to our association and the industry at large.

There are few in our industry who have been as passionate about our industry or have made such an impact as Peter, and his work has provided us with this opportunity to embark on the next stage of our journey and step into an environment of change and innovation.

Quotes from new chair and CEO

Nick Sherry – “I am honoured to be appointed to the FBAA board and look forward to working with the board, new CEO Leo Gagic, and the members across Australia.”

Leo Gagic – “I am thrilled to be joining FBAA as CEO, and look forward to working with members, partners, the board and the team to strengthen FBAA’s influence, increase member value and ensure it remains the leading voice for brokers across Australia.”

The Finance Brokers Association of Australia (FBAA) says the federal government may yet be forced to reverse course on its tax attack on investors if housing prices or rental costs surge, as predicted by many.

FBAA Interim CEO Peter White AM said that while he urged the government not to proceed with the overhaul of capital gains tax and negative gearing because it will hurt those it’s designed to help, time will tell if the government or critics are right.

“Our political leaders have ignored the warnings and broken a solid promise, so they clearly believe they are on the right track, and now we must wait and see,” he said.

However he noted that the legislation was still to get through the House and Senate.

“While we assume it will pass as is, there is a possibility that it will only pass with some amendments, so there is still an element of the unknown.”

Mr White warned that the government will face its greatest test if the changes backfire.

“It is not obvious at this time how a reduced supply of rental properties coupled with increasing demand due to factors including population growth can do anything except drive up rental prices for many who are already struggling.

“At the same time, the government seems to think that if more properties are available for purchase, suddenly more first home buyers can afford them, but this ignores the many other factors that lead to housing affordability.”

He also pointed out that it’s likely prices on newly built homes and apartments off the plan will rise as investor demand increases, and this would drag up prices across the entire housing market.”

“If the government is right and the outcome is positive we all celebrate, but if it’s wrong how quickly will it react?” Mr White asked.

“If these changes make lives worse, will the prime minister and treasurer immediately admit they got it wrong, take responsibility and correct it?

“I’d like to see them publicly commit to a course correction if needed, as this will allay the fear many people currently have, and help to rebuild trust that has been lost due to this severe, broken promise.”

Call for brokers to be proactive

Mr White also called on mortgage brokers to be proactive by contacting clients and urging them to seek professional taxation advice for their future investment decisions.

“While brokers can’t provide taxation advice unless professionally qualified to do so, we can initiate conversations and remind clients that once they have an investment strategy based on the new laws, we are there to assist them with the finance options that will help them achieve their goals.”