Ever wondered how mortgage brokers get paid? We sat down with HTA Director, Ben Seeger, to find out.
I never considered this something I should educate clients on, yet this morning I heard almost 60% of Australians believe mortgage brokers are expensive. Now, I love numbers so let’s use this statistic to help.
It is reasonably uncommon to pay a mortgage broker for their services because the lender picks up the bill for all the broker’s hard work at no cost to the client. No, there are no extra fees and interest rates aren’t higher; the bank pays the broker to help the client get their finance sorted. Mortgage brokers get paid a set commission based on the loan size.
It begs the question, why do banks do this?
It is actually cheaper for the lenders to pay broker commissions than to have internal staff for this service. When you consider salaries, car allowance, commissions, rent and support team to name a few, the costs really add up.
So why are you better placed to use a mortgage broker? Mortgage brokers can:
- have 30 + lenders to use to find the right place for you to borrow money
- negotiate with lenders to get better rates than what’s offered online
- Ensure you correctly structure your loans. This could mean higher tax-deductible debt, the ability to repay sooner, or less interest cost
- Hold your hand through the process
- Work on debt reduction strategies with you
- Educate you on the process, different products etc.
- Don’t need to be paid by the client
At HTA, we do all the above and keep an eye on your loans and interest rate. Before you know it, we are on the phone with a better deal to save you money.
Top 5 wins from last month:
- Saved a couple over $30k in interest costs on their loan
- Refinanced a client’s loans to rates 2.5% lower and then negotiated rates with current lenders down .8%.
- Helped members of our HTA team buy family homes
- Put a business overdraft in place for a client when their bank had previously said no
- Worked with over ten clients on debt reduction strategies
Please contact us if you or someone you know would like this service or to be part of our Top 5.
