Dealing with Mortgage Brokers with Rebates

[sydney_kings]

Hi all,

I'm in a situation to fund a recent property purchase. I've been provided two offers, one direct through a bank at say a 0.9% discount. The second of equal discount is provided by a mortgage broker, but as an example, 0.7% of the discount is applied automatically by a bank with an additional 0.2% rebate given by a mortgage broker.

As the discount through another bank requires a refinance, I would rather not pay for the refinancing costs/early termination payout (and they would not negotiate).

The question is, what's stopping the mortgage broker stopping the additional 0.2% rebate once the contract is signed. I'm stuck with both the lower rate and potential refinancing costs as per the mortgage documentation. Is there a way I can protect myself from the mortgage broker in case something falls through (ie. if they go broke and do not repay the discount back to me)?

I'm appreciative of any suggestions/experiences you may have

 

[Rolf Latham]

Trust is all u have really................

Unless u can be bothered to enforce a contract through a court.

Without having full disclosure its hard to comment.

Something to think about though ...........At .20 off the broker is likley rebating 80 % of their ongoing gross commission.

Depending on their business model and lead base cost and aggregation model, it means no ongoing income, in fact it could be costing them to provide that 20 pt rebate.
,
Must be a fair slab of dough for the bank to offer 90 pts discount, so the upffont comm on the broker side may be quite substantial, hence the offer of the 20 pts rebate.

ta
rolf



ta
rolf