Shh…this is one of the BIG secrets of the housing market. Your lender is paying trailing commissions to the broker who sold you your loan – and passing on the bill to YOU!
Worse – you could get some of it back. But most don’t.
Trent Lee, founder of Mates Rates Mortgage Brokers, is baffled.
Mates Rates’ main selling point is that it returns up to 0.30 per cent a year in trailing commission to clients every month for the life of the loan.
“Lenders pay us up to 0.30 per cent pa commission monthly. We gift it back to the borrower to help them pay off their home loan faster. We pay out up to $70,000 cash back every month to our clients,’’ he says.
So why are people not killing him in the rush?
“Few people know about us,’’ Lee says. “We are a small player without the big advertising budget of the big four banks.
“We are suppressed by all the advertising noise around us especially from the big banks.’’
Mr Lee claims that Mates Rates is a pioneer in this market and recommends in an overheated residential market, people should regularly undertake a “home loan health check.’’
“Shop around for a cheaper home loan. You will always find cheaper home loans.”
“At Mates Rates we negotiate a lowest interest rate from our extensive list of lenders, and with our unique monthly cash back, your loan will cost significantly less.’’
Unfortunately, many people feel disinclined to change their lender especially when they have all their loans including credit cards, with one institution – usually one of the big four banks.
“There is apathy in the marketplace. People with home loans do not think it necessary to change their lender – it is the least important thing on their radar.”
He is puzzled that people with home loans are giving up on saving money and getting cash back from Mates Rates.
If you are currently in the market for a new home loan or looking to refinance your existing loan, be sure to do your homework! Simply contacting a company like Mates Rates Mortgage Brokers could save you a huge amount of money in the long run – so why put it off?