Mortgage Choice stock has taken a dive with the news that its funding source, Westpac, will be amending its distribution agreement with the home loan broker to cut commissions paid for new business.
"Given the still competitive nature of the home lending industry, it is not possible to quantify the proportion of new business likely to be introduced to Westpac in the future," Mortgage Choice said in statement to the Australian Securities Exchange today.
"Accordingly it is not possible to determine whether there will be any material financial effect flowing from this proposal."
The listed home loan broker's shares hit $1.16 today, although Mortgage Choice said the date of the change was yet to be announced but would not affect the current financial year.
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