Mortgage broker:pay back commissions when early exit?

Discussion in 'Loans & Mortgage Brokers' started by Ponk, 12th Jul, 2015.

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  1. Ponk

    Ponk New Member

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    1st Jul, 2015
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    Hi,

    Is it normal for mortgage brokers to demand to pay back any of their commissions when you discharge or cancel a loan within 24 months?
     
    Ponk, 12th Jul, 2015
    #1
  2. Corey Batt

    Corey Batt Well-Known Member

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    Adelaide, SA
    Some require this, some don't.

    The main reason behind this is that if the loan is terminated in a certain period of time, the broker can be charged back the amount paid to them by the lender - causing them a significant cost.
     
    Corey Batt, 12th Jul, 2015
    #2
  3. Terry_w

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

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    Terry_w, 12th Jul, 2015
    #3
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Some do - and if they do, they'll outline it in a "credit quote" which they'll ask you to sign.

    Geeze you're going well Terry to not have a clawback in a decade!
     
    Jamie Moore, 12th Jul, 2015
    #4
  5. Sonamic

    Sonamic Well-Known Member

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    Seems to be something in the weather. . . . .
     
    Sonamic, 12th Jul, 2015
    #5