Our Service Is Usually Funded by the Lender You Choose
One of the great benefits of using a mortgage broker is that my service is generally provided at no direct cost to you. When your loan settles, the lender pays me a commission for helping arrange your finance.
The commission is built into the lender’s cost of doing business and does not usually affect the interest rate or fees you pay. Regardless of which lender you choose, my focus is on finding a loan that suits your needs, goals and circumstances.
I believe in complete transparency, so I’ll always disclose how I’m paid as part of the lending process and answer any questions you may have.
How are we paid?
This is one of the most common questions we’re asked, and it’s a great one.
In fact, it’s something we believe should be discussed openly from the very beginning. We want you to feel confident and informed about every part of the home loan process, including how we are remunerated.
When we help arrange a home loan and your loan settles, the lender pays us a commission for the work involved in guiding you through the application process and securing your finance. This commission is paid by the lender to our aggregator, who then pays us.
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How mortgage broker commissions work
Mortgage broker commissions are generally made up of two parts:
Upfront commission
This is a one-off payment made by the lender after your loan settles. Mortgage brokers typically receive this commission within 4–6 weeks of settlement.
Trail commission
This is an ongoing monthly payment paid by the lender while your loan remains active. It is calculated based on the outstanding balance of your loan
Does using a broker cost more than going direct to the lender?
No. As a client, you are not charged a higher interest rate or additional fees for using a mortgage broker as opposed to going direct to the lender.
The interest rates, fees, and charges applied to your home loan are set by the lender and are the same whether you use a broker or go directly to the lender.
Additional Fees
Mortgage brokers typically operate their own independent businesses. Some brokers may charge clients a fee, while others do not, we generally DO NOT charge our clients fees.
If a broker intends to charge a fee, they must provide you with a Credit Guide before conducting any business. This document outlines their services, fees, and obligations. (For example, our Credit Guide is available on our website: www.vanquishgroup.com.au.)
Once the broker has assessed that they can assist you, they must provide a Credit Quote. This document details any fees payable, allowing you to decide whether to proceed.
Disclosure Requirements
Mortgage brokers are legally required to disclose all forms of remuneration, including:
- Commissions
- Bonuses
- Receiving referral fees (if applicable)
- Paying referral fees (if applicable)
- Client fees
This information is provided in a Credit Proposal Disclosure Document, which clearly outlines how the broker is being compensated for arranging your loan.
We refer to the Credit Proposal Disclosure Document as Statement of Credit Assistance.
The MFAA are the peak association for the mortgage and finance broking industry which we are a member of, for more information on how mortgage brokers are paid and why to use a mortgage broker click here.
