Commissions: How much do mortgage brokers get per loan?

As with many services in life, you will get clients who can see the benefit in using a broker, others wont. Many broker clients are ones who are not 'Vanilla deals', i.e have bad credit, Lo Doc, etc. What brokers do is structure the loan as well rather than 'set and forget'. In some cases we also tend to help clients with budgeting and discipline by holding their hands. All for free to the clients. If they cant see the use then thats up to them.
 
While the advertised rates may be the same, I would think that brokers would have a much bigger picture of how much different banks are willing to decrease their rates. For example, you or I may think a .5% reduction is great and walk away happy, but a decent broker would know that this particular lender regularly gives 1% on this particular loan size.

My broker has just negotiated my rate down another .15% (with a new loan on their books). While I could have asked for this myself, it was nice to have someone do the heavy lifting without being asked.

BR

So you think a broker has a better picture of a bank and the rates they can offer, a broker who deals with multiple banks, compared to someone who deals with the same bank every single day...
 
So you think a broker has a better picture of a bank and the rates they can offer, a broker who deals with multiple banks, compared to someone who deals with the same bank every single day...

Brady do you know under what circumstances HomeSide is more competitive than the CBA and vice-versa?

I do because my business managers within both lenders (who see more deals every day than anyone in a branch) tell me where their niches are. My relationships with both guys are so strong that they actively call me when things change.
 
So you think a broker has a better picture of a bank and the rates they can offer, a broker who deals with multiple banks, compared to someone who deals with the same bank every single day...

I understand the sentiment - and I agree with you (sort of).

Brokers that do decent volumes should be in the know because pricing requests are being put fourth with multiple lenders everyday - so you quickly get a feel for who's offering what.

Cheers

Jamie
 
Having sat in Bradys chair (per se) I think I know where hes coming from. When I was at CBA i used to write about 50M a year sitting in the branch so saw good volume during that time.

But the only resource I had as to what was happening on the outside at the time was a cannex guide the bank gave us access to.

bearing in mind this was many many years ago.

What the banks would do outside of the carded Cannex rates - different story. I think my main competitor at the time was this guy at Westpac across the street.

But I'd suggest that right now is one of the most competitive times CBA has been back in the ring in a while though. Usually CBA (and any bank) does a big promo, soaks up market and then when its drank its fill the well runs dry until the hangover goes away and they have another run.
 
Brady do you know under what circumstances HomeSide is more competitive than the CBA and vice-versa?

I do because my business managers within both lenders (who see more deals every day than anyone in a branch) tell me where their niches are. My relationships with both guys are so strong that they actively call me when things change.

I don't research multiple banks policy's besides what picked up here. I know CBA policy, it's what I do all day everyday. Pete I respect you and we see eye to eye in many things but if you think that you have a better ability to write a loan through CBA with the assistance of your BDM over the relationships I forge wvery single day I don't think we are going to agree on this one.
 
I understand the sentiment - and I agree with you (sort of).

Brokers that do decent volumes should be in the know because pricing requests are being put fourth with multiple lenders everyday - so you quickly get a feel for who's offering what.

Cheers

Jamie

I here you Jamie don't get me wrong I'm not sayin that I know where you can get the best rate, I know 1 company that's it. That's all I do. But that's all I specialise in that 1 company.
 
I don't research multiple banks policy's besides what picked up here. I know CBA policy, it's what I do all day everyday. Pete I respect you and we see eye to eye in many things but if you think that you have a better ability to write a loan through CBA with the assistance of your BDM over the relationships I forge wvery single day I don't think we are going to agree on this one.

I don't dispute that at all Brady, especially comparing your ability to write CBA loans over mine (I would suggest that I know some aspects CBA policy better than the woman in my local branch though, she's almost useless).

There's no arguing that you've got an easier and far more personal connection to the credit people than most brokers have, but I think that gap is definitely narrowing. Many lenders including the CBA have done a lot to give brokers better access.

I'm just pointing out that when lenders start getting competitive on pricing, they make it very well known to the broker channel and make it very clear where they can be pushed for a better deal.
 
So you think a broker has a better picture of a bank and the rates they can offer, a broker who deals with multiple banks, compared to someone who deals with the same bank every single day...
No, I think a broker has a better picture of a variety of banks and rates, compared to someone who deals with the same bank every single day.

If you offer me a loan for 5.5%, how do I know if that is the best deal I can get? I see it and think, 'what a great bloke, he has given me .3% off the standard rate', when in reality you could have gone a lot lower. A broker can compare a bank's offer to other loans with the same and different lender to push for the best possible rate (I'm using rates as an example; I know they are not the only consideration). You work for the bank, a broker works for me.

You may know what CBA can offer me, but what about the other 20 lenders? If I want to negotiate a better rate with you, I need to do the research myself; a broker has done the research already and already has the relationships in place.

* All of my comments above assume a high quality broker.

BR
 
I here you Jamie don't get me wrong I'm not sayin that I know where you can get the best rate, I know 1 company that's it. That's all I do. But that's all I specialise in that 1 company.

Hey Brady

Yep - I get where you're coming from.

Cheers

Jamie
 
Back
Top