If you are looking to buy a home, refinance your existing home loan or would like to talk about debt consolidation, then talking to your local mortgage broker in Lithgow could be the best thing you can do.
You can find a mortgage broker in Lithgow by contacting Jeff at Homeloan Plus.
The local Lithgow area has gone through many changes over the years, but what we have noticed is how many local major banks and branches have either downsized or closed.
This has left many Lithgow residents disappointed as it has taken away lots of jobs and the customer service many of us enjoyed.
With the changes also comes the lack of choice or the ability to just walk into your bank and meet your local branch or lending manager for a chat. Now you need to book in weeks in advance or they will just send you to their online services.
This is were using the services of a mortgage or finance broker can help you work through a list of lenders with all their options and finding out your possible borrowing capacity.
When a mortgage broker writes a loan, and the loan gets approved and drawn down, the broker or their firm will get paid an upfront commission on the loan draw down amount. This can range from 0.55% to 0.7% of the initial draw down.
Brokers also get paid a trailing commission on loans written, just like how financial planners gets paid for funds under management. This is usually in a range of 0.1% to 0.15% of the trailing balance each month.
But its not all good news for mortgage brokers on how we are paid from the lenders as we also have what they call a claw back agreement written within in the lenders agreement with the mortgage broker.
This means that if a loan is discharged within the first 12 months the lender will take back 100% of the upfront commission paid to the mortgage broker. After 12 months and up to 24 months they will take back 50% of the commission paid.
Could you imagine going to work and picking up your pay cheque with $0 pay this week and when you question the boss he goes.
“Well, that job that you did 6 months ago, the customer decided they needed to change and doesn’t want it anymore, so we have taken your weeks wages off you to cover our costs”.
We understand that sometimes peoples circumstances can change, like selling their home, a separation or just a simple "I do not like that lender".
If I we had written your loan and this was to happen, all we ask is that you keep us informed of any changes and give us a call to let us know.
If your looking to buy a new home, refinance your existing mortgage or would like to talk about debt consolidation. Contact Jeff from Homeloans Plus your local mortgage broker in Lithgow.
All content is general in nature. Before undertaking any financial decision, please obtain personal financial advice that is tailored to your situation and is documented in our credit guide.
Jeffrey Parker is an authorised credit representative (Credit Representative Number 394045) of Custom Equity Group Pty Ltd (Australian Credit Licence Number 383666).
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