Changing brokers- what happens to loans?

[ZOMG]

I'm currently thinking of changing mortgage broker due to language difficulties- having a hard time explaining concepts like debt recycling in a different language amongst other things. However, the current broker has been fairly good to us so I don't want to burn any bridges.

The only issue I see is that the current broker has setup our PPOR loan and currently managing my 1st IP loan with CBA, and if I were to change brokers would they be able to access my current loans to restructure them? Also, would changing brokers somehow negatively affect my current broker's financials/bonuses?

Cheers

 

[Corey Batt]

A new broker will be able to take over your current loans easily.

The only negatives are if the loans are refinanced by the new broker, this can result in a clawback/cut off of trails depending on what's done.

 

[Peter_Tersteeg]

To take control of your existing loans, the new broker would need to restructure them in some manner. Helping someone with one loan doesn't entitle the broker to the income from other loans they had nothing to do with.

With the CBA, the new broker would receive the future trail from the time the re-set up the loan. The new broker does not get paid an upfront commission on lending already in place. The existing broker would loose the trail income. There could be a claw-back to the existing broker if you move lenders within 2 years of setting the loan up.

 

[Jamie M]

How long have you had the loans?

If 2+ years then the new broker may take on the trail depending on what restructuring is done.

If less than 2 years than a clawback of the upfront could occur for the old broker - and new broker may be paid the trail.

Cheers

Jamie

 

[ZOMG]

Thanks for the quick responses! It's only been little over a year since the 1st loan and currently in the process of setting up the 2nd loan. I feel bad/guilty if we were to change and my current broker loses out on the payments. I'll try and discuss again about loan structuring with her but if it doesn't work then I don't know...

 

[Redom]

I'm currently thinking of changing mortgage broker due to language difficulties- having a hard time explaining concepts like debt recycling in a different language amongst other things. However, the current broker has been fairly good to us so I don't want to burn any bridges.

The only issue I see is that the current broker has setup our PPOR loan and currently managing my 1st IP loan with CBA, and if I were to change brokers would they be able to access my current loans to restructure them? Also, would changing brokers somehow negatively affect my current broker's financials/bonuses?

Cheers

You seem like the perfect client ZOMG - its pretty considerate of you to take into account your previous brokers work.

If your looking for great communication skills, give Jamie a call - his built a reputation on these forums for it.