How we are paid

Commission from lenders

When a loan we arranged settles, the lender pays us an upfront commission. It is worked out as a percentage of the amount you borrow, and the percentage varies between lenders.

Most lenders also pay a trail commission: a smaller amount paid regularly for as long as the loan stays open, based on the balance owing. Trail is part of what lets us keep helping after settlement, for example when you want to review your rate or change your loan.

Commission is paid by the lender. It is not added to your loan balance. Before you apply, we give you a document that sets out what we expect to be paid on your loan.

Fees you might pay

Our position on fees: [Client fee statement (from Credit Guide)].

If we would ever charge you a fee for our help, the law requires us to give you a written quote first, and you have to accept it before any fee applies.

Lender and government costs

Some costs of buying or refinancing are not ours and are paid whichever way you get your loan. Depending on the loan and the property, these can include:

• lender fees, such as application, valuation, settlement or ongoing account fees
• lenders mortgage insurance (LMI) if you borrow more than 80% of the property’s value
• transfer (stamp) duty and mortgage and transfer registration fees, set by the state government
• your conveyancer or solicitor’s fees

We show you these costs in your recommendation, so you can compare loans on their total cost and not just the interest rate.

Our best interests duty

Since 1 January 2021, mortgage brokers have had a legal duty to act in the best interests of their clients, and to put the client’s interests first when there is a conflict. In practice that means:

• we recommend the loan that suits your situation and goals, not the one that pays us the most
• we record why we recommended it and which other options we considered
• we tell you about conflicts of interest, including how we are paid

ASIC, the regulator, explains the duty in its regulatory guide RG 273 (see sources below).

Our lender panel

We can only arrange loans with lenders we are accredited with. We compare loans from [Number of lenders on panel] lenders on our panel. Not every lender in Australia is on our panel. Our Credit Guide lists the lenders we use most often.

Questions