Not all lenders are available to all brokers. The exact details of the lenders your broker has access to is disclosed within the Credit Guide your broker gives to you when providing credit assistance or is available upon request.

The way in which your broker will stay in touch with you will differ, however typically this will be via email. In addition you will be able to contact them for guidance as required. You are able to opt out of these communications at any stage.

There may be occasions where you may be charged a fee by your broker.

Do I have to pay to use a broker?
There are a lot of misconceptions that mortgage brokers charge hefty fees. Generally this is not the case. Typically a mortgage broker will be paid by the lender (ie no additional cost to you) in the following way:

Mortgage brokers are paid an upfront commission and a trail payment:
1. UPFRONT PAYMENT PAID TO ME BY THE LENDER, NOT BY YOU.
A one-off payment called an upfront commission is usually between 0.65% to 0.7% of the loan amount (+gst). We do all the legwork to get your loan approved.

2. TRAIL PAYMENT PAID TO ME BY THE LENDER, NOT BY YOU.
‘trail’ or ongoing commission is usually 0.15% p.a., based on the balance of your loan. We’ll be in regular contact with you to check in on your situation and make sure your loan continues to work hard for you, your changing situation and goals.

How that plays out
Let’s say you choose to take out a $500,000 loan with Bank ABC.

I will be paid:
1. An upfront commission of $3,250 (based on a 0.65% upfront payment rate)
2. A trail payment of:
$750 in the first year with a loan balance of $500,000
$675 in the second year if your loan balance was $450,000
$600 in the third year if your loan balance was $400,000

The trail payment will continue until you pay off your loan or your loan is changed. It will also cease if your loan ever enters in to default or arrears.