Hi guys, I was looking into mortgage broking companies since I was thinking of getting a home loan and I might need to get a broker’s advice for it.
Roughly how much do you charge for your services? Please let me know ASAP if possible.
Fees for mortgage broking services
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Fees for mortgage broking services
Hi and welcome to the forums summer86,
We actually do not charge any fees to most of our clients. In the first place we waive our fees for any existing customers, referrals or friends and family of our staff members.
We usually charge fees if you fall under any of these situations:
You are in our Prepare to buy program
Under this program we help clients who want to get a home loan in the near future but are not sure if they can qualify. We work with them to identify what issues lenders may find in their application and inform them of what they can do to increase their chances of approval. This gives them a better chance for when they do actually apply for a home loan.
You are applying for a complex loan or a small loan
We usually charge a fee if you are applying for a complex loans or a small loan. In this case a small loan would have to be for less than $200,000.
You are applying for a commercial loan
Commercial and business loans require more experience and work compared to residential home loans so we may have to charge you a commitment fee and / or a brokerage fee.
Please note that depending on your situation our brokers will inform you regarding the fees upfront so that you know exactly what you are getting into.
In some cases the borrower may pay back the loan in the first two years after loan settlement in which case the loan is unprofitable to the lenders. If this happens they will usually charge us a “clawback” fee which can be up to 0.77% of the loan amount if you paid back the loan in the first year or 0.385% if you paid it back in the second year.
If this happens then we will charge the same amount (not more) to you. This can also be avoided by applying for your loan with a lender who does not have this policy.
You can call us on 1300 889 743 or send us an online enquiry if you would like to get more help for your home loan.
Cheers,
Otto
We actually do not charge any fees to most of our clients. In the first place we waive our fees for any existing customers, referrals or friends and family of our staff members.
We usually charge fees if you fall under any of these situations:
You are in our Prepare to buy program
Under this program we help clients who want to get a home loan in the near future but are not sure if they can qualify. We work with them to identify what issues lenders may find in their application and inform them of what they can do to increase their chances of approval. This gives them a better chance for when they do actually apply for a home loan.
You are applying for a complex loan or a small loan
We usually charge a fee if you are applying for a complex loans or a small loan. In this case a small loan would have to be for less than $200,000.
You are applying for a commercial loan
Commercial and business loans require more experience and work compared to residential home loans so we may have to charge you a commitment fee and / or a brokerage fee.
Please note that depending on your situation our brokers will inform you regarding the fees upfront so that you know exactly what you are getting into.
In some cases the borrower may pay back the loan in the first two years after loan settlement in which case the loan is unprofitable to the lenders. If this happens they will usually charge us a “clawback” fee which can be up to 0.77% of the loan amount if you paid back the loan in the first year or 0.385% if you paid it back in the second year.
If this happens then we will charge the same amount (not more) to you. This can also be avoided by applying for your loan with a lender who does not have this policy.
You can call us on 1300 889 743 or send us an online enquiry if you would like to get more help for your home loan.
Cheers,
Otto
Re: Fees for mortgage broking services
I’m still looking into other companies so I hope you don’t mind if I don’t call you guys right away.
Thanks for replying so quickly anyway
Thanks for replying so quickly anyway
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Fees for mortgage broking services
summer86, feel free to contact us when you are satisfied with your research. You are also welcome to post here on our forums if you have any confusion about your home loan.
Cheers,
Otto
Cheers,
Otto
Re: Fees for mortgage broking services
I’ve been told to get a mortgage broker as well by a friend and I was actually looking up the fees when I found this thread.
Could you tell me why I shouldn’t just go ahead to the bank and do it myself? What are the advantages of hiring a broker?? :/
Could you tell me why I shouldn’t just go ahead to the bank and do it myself? What are the advantages of hiring a broker?? :/
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Fees for mortgage broking services
Hi frida,
Yes you can apply for your home loan yourself however a mortgage broker can help increase your approval chances and make sure that you get the right loan.
We can do this because we have a strong network of lenders and we know their lending policies. This allows us to find the right lender whose policies are favourable to someone in your situation.
For example, if you had a default and applied with a lender who was strict with defaulters then you may get declined. This would result in a credit enquiry on your credit file which would further bring down your credit score.
Now if you had used a mortgage broker, they would have assessed your situation, seen your default and found a lender who would be more considerate of your credit issues and more likely to approve your home loan. Furthermore if your situation was so bad that you had no chance of approval, then a broker may have informed you of this and what you should do to increase your chances for applying in the future.
As a layman, it may be difficult for you to understand all of your bank’s policies and you may not even have the time to find another lender. For example, a bank may allow construction loans and trust loans but not if they are combined.
Home loan applications are also very complicated, especially when your loan amount is more than 80%. When your loan amount goes over 80% then the lender needs to work with a mortgage insurer who may also decline your loan.
Please also keep in mind that when you apply with a bank and even if you meet their requirements, only that particular bank’s loan products will be available to you. This means that you may miss out on getting more competitive rates from a different lender.
Cheers,
Otto
Yes you can apply for your home loan yourself however a mortgage broker can help increase your approval chances and make sure that you get the right loan.
We can do this because we have a strong network of lenders and we know their lending policies. This allows us to find the right lender whose policies are favourable to someone in your situation.
For example, if you had a default and applied with a lender who was strict with defaulters then you may get declined. This would result in a credit enquiry on your credit file which would further bring down your credit score.
Now if you had used a mortgage broker, they would have assessed your situation, seen your default and found a lender who would be more considerate of your credit issues and more likely to approve your home loan. Furthermore if your situation was so bad that you had no chance of approval, then a broker may have informed you of this and what you should do to increase your chances for applying in the future.
As a layman, it may be difficult for you to understand all of your bank’s policies and you may not even have the time to find another lender. For example, a bank may allow construction loans and trust loans but not if they are combined.
Home loan applications are also very complicated, especially when your loan amount is more than 80%. When your loan amount goes over 80% then the lender needs to work with a mortgage insurer who may also decline your loan.
Please also keep in mind that when you apply with a bank and even if you meet their requirements, only that particular bank’s loan products will be available to you. This means that you may miss out on getting more competitive rates from a different lender.
Cheers,
Otto
Re: Fees for mortgage broking services
Well how many banks do you guys work with? 5? 10? 20?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Fees for mortgage broking services
Hi frida,
We work with over 40 lenders and have access to more than 300 loan products.
These 40+ lenders include major banks, building societies, credit unions, regional banks, non-conforming lenders, specialist lenders and private lenders. The reason why we work with lenders other than banks is because specialist lenders are more willing to work with borrowers who have credit issues.
In any case our aim while working with our clients is to find the lender who you can qualify with and whose loan product suits your needs the best.
Cheers,
Otto
We work with over 40 lenders and have access to more than 300 loan products.
These 40+ lenders include major banks, building societies, credit unions, regional banks, non-conforming lenders, specialist lenders and private lenders. The reason why we work with lenders other than banks is because specialist lenders are more willing to work with borrowers who have credit issues.
In any case our aim while working with our clients is to find the lender who you can qualify with and whose loan product suits your needs the best.
Cheers,
Otto