I took out a mortgage a few years ago and refinanced with one of the Big 4 through a mortgage broker. Normally I do not go with the Big 4, but this guy got us a really good deal at the time. I am not sure if its the case anymore our rate being just under 4%pa with offset and having to pay annual fee of almost $400 per year. As part of this deal he promised to payback the cost of the annual fee as long as we don't refinance.
This year being the 3rd one the return was only 10% of the annual fee yet to be paid, the broker argued that his commission is linked to how much interest we paid during the last year and according to him we didnt pay very much that is why only 10% approx$30 of it is getting rebated back to us.
Can someone please clarify if this is how the trailing commission works with Big 4 banks? Or is he just trying to get out of repaying anything back to us this year.
Thank you.
How much do mortgage brokers get from trailing commission at big 4 banks? Looking for advice
Comments
Thanks that same link as above. I didn't know if it was still open discussion. Two weeks old.
The Broker responded to a question 30 minutes ago!
Ok, added my comment. Will wait and see.
In any case, $30 per year shouldn't be enough to stop you refinancing if there are better deals available to you.
Rate with a 3 in front is a good rate. Be Happy.
Commission is linked to the current drawn down loan amount minus funds in the offset.
I'm guessing your loan is one of the following.
- You have a large amount of funds in offset making your loan size very small.
- Your loan size is small, under 250k
- You are behind in your repayments300k left owing on your loans at 0.1% trail = $300 per year.
Your broker might also be paying anywhere from 5%-70% of that $300 to their employer/aggregator.Thank you for your reply. That makes more sense to me now.
Everything that is in your pocket
Have a read through this https://www.ozbargain.com.au/node/410769