General - How are mortgage brokers paid?

Mortgage Broker provides a fee for service to clients and Where the bank pay’s Mortgage Broker for doing the work there is no fees charged.

The benefit this is to clients is listed below.

• We know a lot more about the huge variety of products on the market than you ever will and can therefore save you a lot of time researching the market.
• We know how to compare all the different deals and can work out which is the one most suitable for your particular circumstances.
• We can also help you with the confusing loan application process.
• And, because we know how the different mortgage lenders assess applications, they can save you a lot of time and emotional stress.
• We provide after house service, and contact
• A direct person to ring, no chasing around a branch trying to find a person to answer your questions
• We work with you long term, giving you good service means being referred on.
• We know how important that personal touch is to you, on one of the most expensive assets most people will ever buy.

For doing this work, and for putting the loan application together and for looking after the client the banks pays us a commission for doing THERE work for them.. That is why there is no difference in rates to you the client, if you were to go directly to a branch or thru a broker.

UPFRONT COMMISSION                                                  

For providing this service the banks pay us a commission which is based on the loan amount, and a percentage rate or whatever the bank is paying at the time (they change this regularly – always down). This is called an upfront commission and is paid to the broker 1 month AFTER the loan settles.

TRAIL COMMISSION

As brokers we also get a very small trail commission for looking after you the client, for the life of the loan, which is another advantage to using a broker, you can always go back to them, and get them to help you out with anything that has to do with the loan and the bank. (Plus all future loans you may wish to do)

CLAWBACK

Now of course this isn’t all cut and dry, Banks like to look after all their pennies, so to make sure they make a profit for all loans written, they have a repayment of commission if anything is to happen to any loan written within an 18 – 24 month period, and this is called a CLAWBACK..

What is this, this is what the banks do to the brokers if the loan that was originally written is paid out within 24 months.. They take back ( CLAWBACK ) 100% of all the money that was paid to the broker for doing the work of getting the loan approved, settled, and the client looked after, is taken off the broker.

As you can image, Mortgage Broker is a business, and we do need to make money or we can’t survive, we too have families we need to look after.

All we ask, is if you are thinking of selling your house, refinancing your house, or any restructuring, for lower interest rates, than you call us first. We after all here to help you..

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