Are there any lenders who will pay break costs to attract new business?

[Highlygeared]

To MB's out there,

are there any instances/lenders that you can think of who will absord some of the break costs being levied on a fixed rate loan to win business?

For example, I'm with Bank A, have fixed loan @8% and want to break for obvious reasons, therefore will incur fees of $40K, but Bank B will eat some/all of that cost to get my business (provided I sign with them on their fixed rates for an extended period, say 5 yrs or more).

 

[Rolf Latham]

Hiya

You might find a broker or mortgage manager willing to share some of their comm, but lenders margins are reasonably tight accoridng to them.

RAMS is providing a rebate of 1500 to get out of non banks generally, BUT nothing is free.

ta
rolf

 

[Highlygeared]

MB commissions wont even touch the sides. I would have thought banks might absord $10K to make $30K over 5 yrs for example (ignoring net present values etc). Better than a kick in the head.

 

[Qlds007]

Back from holiday in the US anyone miss me ?

As Rolf mentioned the major lenders dont need to offer incentives at the moment as they are winning business left right and centre.

Also with the odd exception most MB have to wait between 12-18 months to ensure that the commission they received on the deal is not clawed back (in full or part) so less incentive for them to pay for your business at the moment.