Mortgage broker commission

Discussion in 'Loans & Mortgage Brokers' started by Chreee, 12th Jan, 2020.

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  1. Chreee

    Chreee Member

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    Hi everyone,

    Just wondering if i change mortgage brokers but dont change lenders or refianance.

    What happens to the the commisions? As in who gets what. Does the new mortgage broker recieve any commisions?

    Thanks in advance
     
  2. gerege

    gerege Well-Known Member

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    New mortgage broker doesn’t get any commission until he does a new mortgage. What do you want you’re ‘new’ broker to do? He has to put a loan thru to get money.
     
    David R Sutantyo likes this.
  3. Chreee

    Chreee Member

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    I want to switch brokers because when i try to contact my current broker he has no time foe me and he's response time is really poor, so i want to change brokers but not lender or product just yet. Would the new broker get the trail commission?
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Member

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    Brokers get paid on a loan settlement. If refinance or pay out loan in first 2 years some or all of that commission com to be repaid
     
  5. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Original broker did the work, they get paid.
     
  6. Morgs

    Morgs Well-Known Member Business Member

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    Nothing will change in terms of commissions until you change products or refinance with that new broker.
     
    Terry_w likes this.
  7. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    What exactly would you like your new broker to do? Usually the work they do will end in a new loan so you'll end up on their books eventually.

    And if they do a good job, the existing lending will likely make it's way there at some point.
     
  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    As the others have said - the original broker retains the trail while the loan account is still active.

    However - if you purchase again or need to refi at some point - the new broker will get paid.

    Cheers

    Jamie
     
  9. Chreee

    Chreee Member

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    Thanks for all the responses
     
    Terry_w likes this.
  10. Indmr

    Indmr Active Member

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    The broker who will get the loan through the lender will get the commission and trail.
    As long as you have not signed the application and the loan has not progressed with the lender.
    All you have to do is inform your current broker, you don't seek his/her services.
    Incase your current broker has put the application through. I suppose he/she will have to withdraw the application from the lender.
    Once application has been withdrawn new broker can put the application with the same lender.
     
  11. Lindsay_W

    Lindsay_W Well-Known Member

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    This is a perfect example of "What Not To Do"- unless there's an extreme reason why, no one should ever do this to a broker. In this scenario, the original broker did all the work and yet the new broker is the one that gets paid for the original brokers work. Never do this.
     
    Property Twins likes this.
  12. Indmr

    Indmr Active Member

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    Poor customer service has a bad impact in every business.

     
  13. Lindsay_W

    Lindsay_W Well-Known Member

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    You don't get 99% of the way through an interaction to then decide it's poor service - you know well before then.
    OP was referring to an existing loan that is already in place not a new application that's almost lodged
     
    Property Twins likes this.
  14. Brady

    Brady Well-Known Member

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    Often hear and see complaints that service was great until loan funded, then nothing.
    Pretty poor form when it happens, get paid upfront, continue to collect trail which is payment for ongoing service which isn't been provided.
    Whilst it's great to say cut ties early, it's either not always visible earlier as per above or some cases due to time frames required to proceed.

    Wonder if a simple email to the broker stating concerned about the lack of post funding service/communication and thinking of refinancing elsewhere.
    That would give the broker the opportunity to lift or they might be happy to see the client walk if hasn't been a good interaction.
     
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  15. Lindsay_W

    Lindsay_W Well-Known Member

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    In the scenario you mention, where the loan settles then the service goes bad yes of course it's poor form on the brokers part. If you want to be a successful broker building long term client relationships then you wouldn't do this.
    The scenario I was responding to, where you get a broker to do 99% of the work then just give it over to another broker to complete the deal and get the comm (for minimal work), that is the thing I have an issue with.
    If ongoing service is not being provided then the only way for the new broker to get the trail is to refinance it via the new broker.
     
    Brady likes this.