Australia's mortgage broking industry is preparing to engage in the 2019 Federal Election campaign, with plans to enlist support from home borrowers who want lenders to continue paying commissions. Large aggregator groups such as AFG, Loan Market and Connective are already encouraging affiliated brokers to lobby against proposals advanced by Commonwealth Bank to outlaw commission-based remuneration. At the moment the campaign is limited to mortgage brokers contacting federal politicians to highlight the negative implications that a ban might have on the viability of their businesses and home loan competition. However, Connective director Mark Haron said the campaign would intensify early next year when home borrowers would be asked to lobby federal MPs against removing commissions. "The industry is planning to widen activities in 2019 and it will be seeking support from customers across the country," he said. In a report sent to affiliated brokers on Monday, Connective warned that the royal commission would recommend a shift to a fee for service pay model. "Of greatest concern was the line of questioning," Connective told its affiliates. "Its focus suggested the royal commission believes mortgage broker remuneration should move towards a flat fee (much reduced from current rates) paid for by the consumer." Given some of the case studies highlighted by the royal commission, there is an expectation across the mortgage supply chain that Commissioner Kenneth Hayne is likely to recommend radical reform of the way brokers are paid when he hands his final report to the government in February. The future of trail commissions looks especially vulnerable. However, the debate over the future of broker commissions has evolved this year into one of the most divisive within the financial services sector. Broker aggregation groups such as AFG and Connective argue that lenders such as CBA want to see more homebuyers borrow directly through bank branches, rather than shop for a mortgage through brokers. They say large home lenders such as CBA stand to gain strategically and financially if remuneration structures in the mortgage broking sector are made unsustainable. Not all lenders are agitating for commission-based pay to be abolished.   Macquarie backs the current pay arrangements, arguing that it has stoked competition for mortgages and helped to drive down borrowing costs. Non-bank lender Resimac yesterday announced its support for the retention of commission structures. "Brokers are critical to ensuring Australia's mortgage market is dynamic and efficient, and to providing a level playing field for lenders of all sizes, especially those without a branch network," said Resimac's head of third party distribution, Brendan Carde. "Brokers provide consumers with access to a wide range of lenders and real choice when evaluating the most suitable loan for their purposes." Lenders such as Macquarie and Resimac rely heavily on third party origination because they do not have the physical distribution networks of the major banks. Regional banks, including Bendigo, Suncorp, BoQ and ME, also argued