How much do you pay a mortgage broker?

It’s a question that almost all of my Perth clients want to ask, but sometimes they feel a little forward in doing so.

“So, how much do we owe you for all of this?”

The answer, in a nutshell, is nothing, but don’t worry we’re not going to be starving on the streets.

The bank actually pays us a commission based on the loan amount we organise for you. So essentially as your Mortgage Broker, once we have gone through the home loan process of researching all of the options, preparing the application, answered any questions the bank might have, received the formal approval, checked and signed the paperwork and liaised with the real estate agent and settlement agent to make sure everything is ok on settlement day, we are paid by the bank.

As a broker, we get paid this first commission followed by a smaller amount for every month that you keep the same loan we arranged for you.

What you might not know is that some of the banks pay different levels of commission to different brokers, some more and some less. 

It’s how these commissions are paid to the broker that you work with that might make you think there’s a little favouritism towards some banks than others.

At Mortgage Choice we’re a little different.

To make sure that Mortgage Choice brokers are acting as impartially as possible, the broker is paid the same rate of commission regardless of the lender that you choose from our panel of approved lenders.

While some banks might pay more or less commission rates to Mortgage Choice on a corporate level, the Mortgage Choice broker who you work with, will receive the same commission regardless.

It’s one of the ways that we try to ensure you receive advice on your home loan and choice of lender that’s going to be the best for your personal situation.

The broker should make sure you know how much they are getting paid

During the home loan process the broker needs to disclose how much they are getting paid from arranging your home loan. 

This is in the initial documents you will sign going over the loan amount, repayments and other details and should be clearly pointed out by the broker.

What happens after settlement?

Once the new loan has settled the broker will continue to receive a smaller annual amount based on the outstanding balance of your loan.

At Mortgage Choice that’s why we like to keep in contact at least a few times a year or more, to make sure you’re still happy with the loan, or if there looks like a better deal or product you might benefit from we can contact you for a chat.

It’s a part of our on-going service where we are your eyes and ears in the home loan market.

If you feel like learning more, or just have some questions feel free to either call Jason Coviello on 0438 211 745 for a chat or send through any questions via email to jason.coviello@mortgagechoice.com.au

If you’d rather be social about it, feel free to head across to my Facebook Page and see if there’s already an answer to your question or pm me.

 

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