50% Trailing commission returned - QInvest Mortgage Broking

[pipsal]

Has anyone every used QInvest Morgage Brokers (part of QSuper - probably only known to Queenslanders)? Apparently a free service to members, and they return "at least 50% of the ongoing trailing commission of your loan" to you as extra repayments. This applies to LOC or new/refinanced loans.

I've never used a broker before, but they've been fairly helpful so far, sending a few scenarios on spreadsheets for refinancing, obtaining LOC and getting a new loan, and have recommended keeping existing loan where it is due to having already paid LMI and not at 80% yet (I believe they are all on a salary to provide this 'service' to members and not paid individual commission).

I have no idea how much commission brokers get - is the 50% trailing commission benefit I would receive on approx $350?K loan worth much, or could I potentially do just as well if I tried to hit up my local branch for lower rates, etc once I knew what product/lender I was after?

 

[D.T.]

It'd be like 30 a month
I'd much rather choose a broker I got along well with, who understood my plans on multi property acquisition and has a clear path on exactly which loan products are going to get me there without hitting any walls in the meantime.

 

[Peter_Tersteeg]

It'd be like 30 a month

Lenders generally pay about 0.15% trail commission and many lenders don't pay trail at all in the first 12 months. On a $350k loan, 50% of the trailing commission is about $22 per month. They may take out aggregation costs as well, so it could be closer to $15 per month.

It might also be worth reading the fine print. Some brokers charge a 'processing fee' for rebating commissions. It appears you're required to be a member of their financial planning service. Many financial planners charge an ongoing fee to their clients.

Any serious property investor will tell you it's not about the interest rate. Selecting a loan is about finding a lender and products that meet your goals. If they can achieve this, then they're worth talking to.

 

[Jamie M]

It might also be worth reading the fine print.

Exactly - they're making money somewhere.

Cheers

Jamie

 

[DaveM]

Or they may have stupid lending policy and wont lend to you, so 50% refunded trail is pointless

 

[pipsal]

Thanks for the replies & info. It won't cost me anything to use the service because they are part of my Superannuation provider (and I probably already pay for it somehow through that!).

I didn't think trailing comm. could be worth that much - good to know it's not worth necessarily sticking with them. Even though they seemed to have some idea about property investment requirements, etc, I might contact one of the brokers on the forum instead who has a bit more property investment experience/knowledge.

 

[b simpson]

I might contact one of the brokers on the forum instead who has a bit more property investment experience/knowledge.

That would definitely be a good idea, although you still may have to sort the wheat from the chaff here