Commission rebate for home loans and health insurance.

Hunter80 on 28/07/2012 - 12:56

Was reading an article in one of the financial magazine about commission rebates, apparently its about $2bn market and if approached properly we can get the commission refunded on a regular basis.

I have a home loan with CBA which I got through a broker, current balance is about $350,000. Also I have a health insurance through iSelect from HCF (pay about $65 per month).

I was wondering if I can get rebate on both products and if yes how much on each and what is the process? Any advice about who is the best one out of all for refunds, anyone dealing with them? Whats the experience like?

Financial

Comments

  • Holysmoke on 28/07/2012 - 19:10

    What did the article say about getting the rebates?

  • alvinmk on 29/07/2012 - 00:18

    I am interested to find out about this rebate too.

  • ShannonIngram on 29/07/2012 - 10:15

    How old was the magazine? There used to be refund home loans who did this in the home loan space but they went into administration last year as it wasn't a viable business model. They've since been purchased by Homeloans Ltd and the business requirement to refund commissions is gone now. You might try googling one them and see if any of them still offer it?

    The only other home lending place I'm aware of that does it (and this is only from a quick google myself) is We Share Home loans. They aren't a broker but they refer your business to a bank and receive a commission for doing it. It's only an upfront commission (not ongoing) and I am unsure how much they pass on.

    As a broker myself, I rarely pass along my commissions - generally to clients who are incurring switching costs etc but never my trail income. Brokers commissions were cut by around 30% in 2008, we're in a much tighter regulatory environment and it's pretty tough times economically all around, not to mention that if you pay out your loan (either refinance or sell the property) within the first 12-18 months, the banks claw back all or most of the commission we get paid, so I do question whether people who rebate their commissions will be around to continue giving quality advice in the long term.

    That said, one thing you might want to do is look at your health insurance. From my experience, whilst your home loan rate isn't loaded for using a broker, your insurance premium is. Have you looked at doing a quote direct with HCF?

  • alwiese on 29/07/2012 - 10:58

    Yes you will be able to get money back goto - http://www.yourshare.com.au/ to calculate the amount and find out the details. The site has been on tv.

  • Steptoe on 29/07/2012 - 13:45

    Look no further than OzBargain.
    http://www.ozbargain.com.au/deals/cashbackmortgage.com.au

    70% upfront commission refunded to you.

    Compare products at http://www.cashbackmortgage.com.au/start-home-loan/home-loan… and see how much commission is paid by each lender.

    Despite what you'd thing with all the post negs, I have used the service Jon provides, and happy to recommend to others.

Login or Join to leave a comment
Login Join