Clawback fees for Aussie and CBA

Discussion in 'Loans & Mortgage Brokers' started by SurfnTurf, 18th Dec, 2020.

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  1. SurfnTurf

    SurfnTurf New Member

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    Hi all,
    I’m looking to refinance to take advantage of the cash back offers. I’d like to start doing this once per year or so. Currently I have a loan with CBA through Aussie and it’s over 12 months old but younger than 18 months.

    A couple of questions;

    Anyone know if I’ll get charged clawback? I can’t see anything on the contract in relation to this.

    How would this affect my original broker, they’d still get paid right?

    Struggling to find any info in this online so help appreciated.
     
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    If it's not in an agreement you signed, your broker cannot charge a clawback. That sort of thing is usually up to the individual broker to put into their agreements, not the head group like Aussie.

    If there's a clawback, your broker is the one that will cop it, not the bank, not the head group. So no, your broker will have to give some of their commission back to the CBA.

    Also have you considered that a good, competitive loan might actually save you more money than a cash back? Choosing lenders based on how much they bribe you is a false economy.
     
    Tyla likes this.
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Your broker would get a clawback up to 18 months to 2 years
     
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  4. SurfnTurf

    SurfnTurf New Member

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    Thanks for the info Peter and Terry. Do you know if there’s a standard length of time cba will charge clawback for?

    Peter yes I have considered competitive rates vs cash backs. For a $500k loan I’d need a 0.4% better rate to do better than a $4k cash back, assuming I lose $2k in fees during the switch (unless I’m missing something?). I want an offset account so I feel like that rules out a lot of the lower rate offers.
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes 18months generally.
     
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  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Please make sure you disclose the intention to the broker, otherwise the financial benefit conferred on you will be paid for the broker.............

    ta
    rolf
     
  7. Mark F

    Mark F Well-Known Member

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    Your calculation is based on the savings over one year. Hold the the loan for 2 years and the interest rate differential drops to 0.2% to balance out the cash back.

    If I was a broker (or even a bank) and saw you swapping loans every 12 months you wouldn't be getting the best deals on offer.
     
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  8. SurfnTurf

    SurfnTurf New Member

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    True good points to consider thanks.

    Not sure what you mean here. Do you mean paid for by the broker? I’m intending to wait out the clawback and then go to a bank directly myself.
     
  9. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    There's deals out there that are almost that much cheaper than many of the lenders offering cash backs.

    You're also assuming that cash backs are normal. They're not. They have been around for about 18 months, but many lenders are starting to wind them down at the moment. Most lenders I've spoken to about them are realizing that the cash backs are costing them a lot of money.
     
  10. Lindsay_W

    Lindsay_W Well-Known Member

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    Watch your credit score get hammered
     
  11. Shazz@

    Shazz@ Well-Known Member

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    Just go through your broker and refinance every 2 years. It’s a win win. Your broker will love you. And you will get the right deal and ensure the loan is structured properly.
     
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