How Much Does a Mortgage Broker Cost on the Gold Coast?
If you’re looking for a mortgage broker on the Gold Coast, it’s reasonable to ask what their help will cost before you share your documents or start an application.
For many home loans, the lender pays the broker a commission when the loan settles, so you don’t pay the broker directly. Some brokers charge a client fee in certain circumstances. Either way, you should know about any broker fee and the costs of the loan before you decide to proceed.
How does a mortgage broker get paid?
Lenders generally pay brokers for arranging home loans. This usually includes an upfront commission after settlement and may include an ongoing commission while the loan remains in place. Your broker must give you information about the commissions they may receive.
That doesn’t mean you should choose a loan based only on whether there’s no direct broker fee. Ask what the loan will cost you, which features you’ll use and why the recommendation suits your circumstances.
For consumer home loans, mortgage brokers must act in your best interests when suggesting a loan. You can ask your broker to explain the other options they considered, including a lower-cost option.
Will I ever pay a broker fee directly?
Possibly. Fee arrangements vary between brokers and applications. If a broker proposes to charge you directly, ask for the amount, what the fee covers and when it becomes payable.
The proposed fee should be set out in a written quote. Read it carefully and ask what happens if your application doesn’t proceed. Also ask whether the broker will receive a commission from the lender.
What other home loan costs should I check?
A broker fee is only one possible cost. Depending on your loan and property purchase, you may also need to allow for lender fees, valuation costs, government charges, conveyancing, building and pest inspections, ongoing package fees or lenders mortgage insurance.
If you’re refinancing, ask about the costs of leaving your current loan as well as setting up the new one. If you’re buying on the Gold Coast, make sure you understand the funds you’ll need to complete the purchase, beyond your deposit.
When comparing loans, look at the interest rate, comparison rate, repayments, fees and features together. An offset account or the ability to make extra repayments may matter more to you than a small difference in the advertised rate.
Five questions to ask a Gold Coast mortgage broker
Before you proceed, ask:
Will I pay you a fee? If so, how much and when?
How will the lender pay you for this loan?
Which lenders can you access, and which can’t you access?
Why does this loan suit me, and what alternatives did you consider?
What help can I expect after settlement?
You can also check whether a broker holds a credit licence or is a representative of a licensee using ASIC’s Professional Registers Search.
Talk to Smart Money Tribe
I’m Nick Harrigan, a Gold Coast mortgage broker and the founder of Smart Money Tribe. I’ve worked in mortgage broking since 2011. When you work with me, you have one point of contact from our first conversation through to settlement and beyond.
Ready to explore your home loan options? Call 1300 280 327 to speak with Nick about your plans and the next steps towards your property goals.
For independent guidance on broker commissions, direct fees and questions to ask, see ASIC Moneysmart’s guide to using a mortgage broker.
Disclaimer: This article provides general information only. It does not take into account your individual circumstances, objectives or financial needs. Loan costs, fees and eligibility vary. Speak with a qualified professional about your circumstances before making a financial decision.
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