Because home loans don’t need to be a hassle. Save money, time and stress.
We believe our customers have the right to know exactly how much it costs to deliver their home loan. Not numbers hidden behind asterisks or fine print to make you feel like it’s too complex to understand.
Because while you don’t pay a fee to see your broker, they’re getting paid by someone... Your lender. Plus, there are other costs involved in delivering your home loan, such as upfront and ongoing commissions, and the paper shuffling. These costs are recovered through the interest rate you pay, as well as additional fees and charges incurred at the start and throughout the life of your loan.
Here are the true costs. And how much you can save by embracing technology to do home loans, smarter.
|Assessment & processing||$4,000||$100|
These costs are based on the Australian average loan size of $350,000 for a live-in principal and interest loan with a 4.0% interest rate, over a 4 year term.
These are approximate figures, based on industry intel because “information on the relative costs of different distribution channels is not readily available”. Though we know “distributing through mortgage brokers… has a higher transaction cost” while the “the cost of processing the loan… is likely to be similar between the [broker and direct to lender] distribution channels”. (Deloitte Access Economics, The Value of Mortgage Broking July 2018, p30).
Looking overseas, there is more transparency, with the total cost for “home loan production expenses” sitting around $US 8887, as reported in June 2017 in the Mortgage Bankers Association’s performance report.