Full Transparency on Fees and Commissions

As a mortgage broker, I am committed to acting in your best interests for all your lending needs. I must comply with numerous legislative obligations that ensure your needs and requirements remain at the center of my work. These laws include, but are not limited to:

- National Consumer Credit Protection Act 2009 (Responsible Lending)

- The Privacy Act 1988

- Anti-Money Laundering and Counter Terrorism Financing Act 2006 (AML/CTF)

These regulations are designed for your protection.

    An Overview of the Service a Mortgage Broker Provides

The service a mortgage broker provides is called Credit Assistance, which typically includes:

- Understanding your needs, objectives, and current financial circumstances

- Comparing and contrasting hundreds of home loan products and negotiating directly with lenders

- Recommending a home loan solution with a competitive rate that aligns with your best interests

- Assisting you in completing all required paperwork

- Providing advice from application through to settlement, keeping you updated at every step

- Staying in touch post-settlement to ensure your home loan remains the best fit for you

    How I Get Paid

Typically, I am paid by the lender (with no additional cost to you*) in the following ways:

   Initial Payment

When your loan has settled, the selected lender will pay me an initial payment as a percentage of the 'net of offset' amount (total loan less any amount in the linked offset account). This percentage varies by lender but generally ranges between 0.60% and 0.75% including GST.

However, some loan products such as “Bridging Finance” may not pay commission as they are short term facilities.

Likewise, if you advise you will only keep the property and loan for 18 months, I will most likely charge a fee for service.*

If the loan is transferred or paid out within 2 years of the settlement date, the lender may reclaim some or all of these commissions from me. This is known as 'clawback'.

   Ongoing Monthly Payments

The selected lender may also pay me an ongoing monthly payment (known as trail commission). This is a percentage calculated and paid on the outstanding balance of your loan at the end of each month. The percentage varies by lender but is typically around 0.15%.

Important Note: My advice is always aligned to your best interests and does not consider any variance of commission between lenders.

    Net of Offset

Any payment made by the lender is based upon the loan amount minus any money you have in your offset account. This means if you take out a $1 million loan and place $900,000 into your offset account, I will receive commission based on $100,000. If you place the entire loan into the offset account, I will not get paid until you use those funds. If you do not use those funds in the first 12 months, I will typically not receive any commission related to those funds.

    Clawback

If the loan is refinanced or paid out within 2 years of the settlement date, the lender may reclaim these commissions from me. Typically this will be:

- 100% within the first 12 months

- 50% within 12-24 months of the loan settlement date

If this occurs, there is no cost to you. However, it does mean that regardless of how appreciative you are of the service I provided, I may not be paid for helping you with your loan.

I request that you share with us any potential plans you may have about selling, refinancing, or making any changes to your loan within the initial 24-month timeframe. If you do decide to make any changes to your loan, please consider using our services again.

Regardless of how I am paid by a lender, I am here to help you with any questions both now and throughout the life of your loan.

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*In some circumstances, I may charge a fee to cover additional time required by my team. Any fees must be fully disclosed and will be discussed with you in advance so you can make an informed decision before proceeding with your application.