For a limited time Cash Back Mortgage Brokers is refunding 70% of the upfront commission we receive when you use us to submit your home loan application to any of the lenders on our panel including all the major banks.
Click to see how much your refund will be.
Lenders available include CBA, ANZ, NAB, Westpac, St George, BankWest, ING, Homeside, Citibank, AMP, Adelaide Bank + Many More
http://www.cashbackmortgage.com.au/start-home-loan/compare-l…
Hi Scubacoles, not sure i entirely understand your comment but the interest rate and fees are exactly the same through us as direct to the lender or another mortgage broker. We just refund most of the commission, and because of the commission sharing model we are completely unbiased as to what lender we advise/or client chooses to go with.
interest rate and fees are exactly the same the lender's advertised rates
of course, if you have any good credit rating, you can get at least 0.1-2% off advertised rates direct from the lender
That's really my point…
Brokers have to get paid somehow, and that "somehow" is built into the product you sign up to.
"….we are completely unbiased as to what lender we advise/or client chooses to go with."
This is a completely misleading (and illegal) statement. You cannot be "completely unbiased"unless you offer every loan and lender available in the Australian market. As you have a limited panel of lenders, you are biased towards those lenders.
I'm sure the MFAA, ASIC and ACCC would love to see your statements! Perhaps your business is not even a member of MFAA?
Personally, getting the trailing commission is a better deal for me. On 400K you get back $850 every year not just a once off 1k. To break it down these guys will get from you $450 upfront and 0.25% per year for 30 years! Shop around for others that refund the trailing commision, that is where the money is.
Hi Quick Ink, you have to look at the true facts here. Most lenders do not pay .25% trail in fact it is down to .15% now and no trail in the first year. Secondly the average loan life is + or - 4 years.
good disclosure (for post by quicklink) ! but if we all do this then there is no agencies/broker like them in australia hahaha
I have newly refinanced from one of big banks to Building Society (which I see this BC in your panel list). In their new contract document, they stipulate 0.55% trailing commission paid to my broker and he gives me 0.1% back.
So what you are saying doesn't really add up for my case.
Anyway in NSW, commission fee structure will be disclosed by the lender to the borrower so we will know how much commission your broker gets from lender.
Having said that, better than nothing but could be better.
Hi Zenzen, we follow the national standard and provide every client a copy of our commission rates for every lender on our panel. The lenders also tend to disclose this in their loan offer documents. Do you mind me asking which lender you went with? Because there is no lender on our panel that pays close to .55% trail commission for "conforming deals" Most of the majors are sitting at .15% as per my first post and you might be getting trail income confused with upfront.
As indicated in comments above, this may "seem" like a good deal to your average joe bloggs in the street, but in reality it is not a good deal, and definitely cannot be considered as a bargain.
I think the comments in this post have been overly harsh. Mortgage brokers provide a valuable service and need to be compensated. The fact that they are offering a 70% rebate means that you are getting something for nothing. Using a broker is like using any other professional service. You are all welcome to waste countless hours dealing with lenders directly and trying to negotiate better deals with them, or you can deal with a broker and save yourself the hassle. For the record, I am not a broker.
Yeah, they offer a service, whether it's valuable or not is what's up for debate…
I fall into the Not category of thinkers.
How do you rate Dentists, Doctors, Lawyers, Accountants - you could just replace them with Google.
I am not saying the service is below par I am just saying if you shop around you can get better value. From being a member here for a while most Ozbargainers are extremely well researched and informed customers making the "value" of a broker less than a typical punter. It then comes down to how to get the best bargain from your chosen institution. Commission rebates are no different from MoneyBackCo in that it just sweetens the deal for savvy shoppers.
From the purpose of keeping the community informed can I suggest you compare http://www.yourshare.com.au/ They offer upfront and trailing commission refunds and depending on the size of your loan it could add up to much more than a once off refund of $1000 even if the average loan is only held for 4 years.
I encourage the rep to compare his service to yourshare along with any pros and cons. For what it is worth yourshare won money mags award this year and also do refunds on other trailing commissions such as super etc.
And lastly, I have no interest in any bank or broker however after searching for the best deal for myself lately I thought I could pass on the info I learned.
Quick Ink, you are misinformed. Firstly we are the only business that is upfront with the estimate per lender with the amount of commission we receive. Every other place i have seen either gives you a range or a generic amount so it is impossible for customers to actually get a realistic estimate. You mentioned another company and they as well give a general figure which is impossible to determine cause each lenders commission structure and rate is different. You are also failing to mention that the average loan length is probably less then 4 years now so these companies that give you this huge figure over a 30 year period is not realistic. It reminds me of a certain lender in the 90's heavily promoting line of credit facilities saying they could save you 200,000 and 15 years off your loan…. in theory it could work but there are so many assumptions built in to it.
"You are also failing to mention that the average loan length is probably less then 4 years now"
No, I did mention - perhaps you should reread.
How any of your retort makes me misinformed is beyond me.
Why did those guys win the money magazone award 3 years in a row if your offer is superior? It appears your offer is your standard deal and not really a bargain at all. Doesn't that just make it advertising?
IF this is for a "limited time" what does the refund % revert to when the limited time is over and when is the limited time over? Or is this just an add for the way that the organisation does business?
Hi Marty, the limited time for Ozbargain users is 3 days. We do run these campaigns frequently and the refund amount does drop. Anyone who contacts us in the next 3 days from Ozbargain will get the 70% upfront commission refund noted on their account and will be honored when they are ready to proceed with an application.
Hmmmmm…
I wouldn't be trading my chance at a cheaper mortgage for only $1000… Shows how much comission the brokers get though!