Do mortgage brokers charge fees?
We are paid by the banks for introducing loan applications and for doing some of the work that would otherwise be completed by one of their staff.
As a result we do not need to charge a fee for most loans. The lenders will not charge you a higher interest rate via a mortgage broker. In fact, we can usually negotiate a competitive discount for larger loans.
It is unlikely that we will charge any fees if:
- Your loan is over $200,000,
- Your situation is not complex, and
- You are keeping the loan for over two years.
Please call us on 1300 889 743 if you have any questions about our fees.
If we can’t help you
If either we decline to take on your loan or the lender we choose declines the loan then there are no fees for our services.
Short term loans
If you repay the loan in the first 24 months after settlement (when the loan is advanced) then the lender may charge us a fee known as ‘clawback’ because we have introduced an unprofitable loan.
The banks charge us up to 0.77% of the loan amount in the first year or 0.385% of the loan amount in the following year. If we are charged this fee then we will in turn charge this to you.
We only charge the amount that has been charged to us by the bank.
If you think this may be a problem then let us know up front and we may be able to apply with a lender that does not have clawback.
Fees for additional services
There are some fees that will only apply in some situations. Our mortgage brokers will inform you if you will be charged one of these fees.
Prepare to buy program
If you are not ready to apply for a mortgage yet but you would like to know what you need to do to be eligible for a loan then we can complete a prepare to buy assessment. We charge $300 for this service but this fee is then refunded to you when you obtain a loan through us later on.
Complex or small loans
If your loan is exceptionally complex or is under $200,000 then we will charge a fee for our services. Please ask one of our mortgage brokers for a quote for your situation.
Commercial property and business loans require more experience and involve more work than a standard residential loan. We may charge a brokerage fee and/or a commitment fee depending on the type of finance you are applying for. Please ask one of our mortgage brokers for a quote for your loan.
All of the above mentioned fees (excluding the short term loan fee) are normally waived if you are:
- An existing customer of ours
- Have been referred to us by an existing customer
- A friend or family member of one of our staff members.
Why do we have these fees?
With the current level of reduced incentives paid by banks to mortgage brokers it is not possible for us to remain a viable business and to offer a high level of service to our customers if we do not charge a fee for unprofitable loans (smaller loans, complex loans and short term loans).
Would you like to know more?
Please do not hesitate to call us on 1300 889 743 if you have a question about our fee structure or to understand what is a mortgage broker and how we can help you. As you can see for most loans there are no brokerage fees.