Who pays your ‘free’ mortgage broker?
There’s no such thing as a free lunch, but that doesn’t mean you will receive lower levels of service or expertise from a mortgage broker who doesn’t charge you. It just means that mortgage brokers are relying on lender commissions for their income.
People often ask if their rate is adversely affected in order to pay the broker's commission - the answer is no. The banks realised that it was far cheaper for them to pay a broker commission than it was to have a fully operational branch. And with brokers holding over 53% of the market it's just smart business.
The main and very obvious advantage of seeing a mortgage broker who does not charge a fee is that it lowers the cost of procuring finance and, despite public debate, the different commission structures offered by the various lenders do not impact the finance broker’s recommendations.
Not only are MFAA accredited mortgage brokers bound by ethics agreements that demand they do not suggest loan products that are unsuitable for a client, a broker who prioritised commissions over their clients would see their business suffer as clients realised that they would get a better deal elsewhere.
As MFAA accredited mortgage brokers we are bound by ethical standards requiring us to give you appropriate advice. Find out more by calling us on 0401 157 601, Brooke and Todd Smith your local mortgage brokers in Yamba, Maclean, Coffs Harbour and surrounds.