Bank/ mortgage brokers fees

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From: James Johnson


There is a company called Australian Mortgage Options in Sydney (they've taken over the old NRMA building in Bankstown), anybody heard of them? They charge $900 fee for arranging a loan (which they say is a bank fee; and they get payed by bank for the arranging). They offered me a securitisation loan (I've got $35000 deposit but no income- student), and reckon the money comes from super funds/wholesale funders as near as I can make out. Does this sound right and what do you think my chances are of negotiating a lesser fee. I know bank loan set-up fees can be negotiated and Austin Donnelly also says that you should never pay that kind of fee at all. If the bank insists then you should walk...
Thoughts/advice anybody?
Cheers

Jimmy
 
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Reply: 1
From: Rolf Latham


Hi James

You are describing a no docs loan from the sound of things.

Obviously, if you feel that you can do better then shop around.

Not unsual for the app fees and charges to go into .5 to 1 % of the loan value for this type of loan product.

While this is a competitive area of lending, the major banks are not in this business.

Ta

Rolf
 
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