WORKING WITH A BROKER
Why use a mortgage broker?
Simply put, a mortgage broker’s job is to find you the right home loan for your situation and make sure that you continue to have the right loan as your goals and situation change over time.
Our code of ethics
We are serious about the commitment we make to our customers.
Transparency
We do all that is possible to ensure our customers are fully informed about why we make the loan recommendations we do, and how we get paid.
Governance and culture
We will always act in accordance with applicable laws and cooperate with any regulatory bodies. We see our role as constantly adapting, leading and shaping best practice in the industry.
Manage conflicts of interest
Conflicts can happen from time-to-time. When any conflict of interest exists, we will disclose them to our customer and always give priority to their needs.
Committed professionals
To deliver outstanding results for you, we invest in ourselves and our business. You can have confidence we maintain, develop and apply a high level of knowledge and skills to meet all required industry standards and qualifications.
Quality
We will do everything possible to ensure records of clients are retained, maintained and kept in a form that is complete, accurate and safe.
Do I have to pay to use a broker?
There are a lot of misconceptions that mortgage brokers charge hefty fees. Generally this is not the case. Typically a mortgage broker will be paid by the lender (ie no additional cost to you) in the following way:
Mortgage brokers are paid an upfront commission and a trail payment:
- UPFRONT PAYMENT PAID TO ME BY THE LENDER, NOT BY YOU. A one-off payment called an upfront commission is usually between 0.65% to 0.7% of the loan amount (+gst). We do all the legwork to get your loan approved.
- TRAIL PAYMENT PAID TO ME BY THE LENDER, NOT BY YOU. ‘trail’ or ongoing commission is usually 0.15% p.a., based on the balance of your loan. We’ll be in regular contact with you to check in on your situation and make sure your loan continues to work hard for you, your changing situation and goals.
How that plays out
Let’s say you choose to take out a $500,000 loan with Bank ABC.
I will be paid: An upfront commission of $3,250 (based on a 0.65% upfront payment rate)A trail payment of:$750 in the first year with a loan balance of $500,000$675 in the second year if your loan balance was $450,000$600 in the third year if your loan balance was $400,000
The trail payment will continue until you pay off your loan or your loan is changed. It will also cease if your loan ever enters in to default or arrears.
