Finance Brokers of Tasmania director Lance Cure, who has been a broker for 33 years, said the industry would change dramatically if the "short-sighted" recommendations were followed.

There are about 50 mortgage brokers in Launceston if the 76 royal commission recommendations are enacted "those livelihoods could come under threat", Mr Cure said.

Momentum Intelligence's Consumer Access to Mortgages Report showed 58 per cent borrowers would not be willing to pay brokers a fee for providing the service banks now pay brokers for.

Of the 42 per cent of respondents who were willing to pay a fee, 11 per cent would pay up to $1000, 3.5 per cent would pay up to $2000, and just 1 per cent were willing to pay up to $5000.

"[This suggests] that this percentage of people would only use the banks and other accessible lenders," Mr Cure said.

"There are 108 mortgage lenders throughout Australia and brokers provide access to almost all of these, providing a wide range of choice and ensuring competition in the mortgage market place and, therefore, lower lending rates to borrowers," he said.

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The Consumer Access to Mortgages report showed 96 per cent of borrowers who used a mortgage broker were either “satisfied” or “very satisfied”, compared to 67 per cent of borrowers who went directly through a lender.

Research group Comparator showed mortgage brokers settled 59.1 per cent of residential home loans in the 2018 September quarter, which is up from 53.6 per cent in the same quarter of 2017.

Broker fees are calculated by lenders to cover the costs in preparing and processing a loan application, which is equivalent to about 1 to 1.2 per cent of the average $370,000 Australian home loan, Mr Cure said.

"They have been paying the brokers an amount similar to this rather than incur the costs themselves, with the up front portion of that, usually around 0.55 per cent of the loan amount, and approximately 0.18 per cent as an annual trail fee."

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