Paying for mortgage broker

[Julliet]

Just wondered if anyone on the forum has used mf simmonds mortgage brokers as they have been mentioned to me but I wondered about the $500.00 fee. I was just after some feedback in considering my options, to date this company is the only one who charges an upfront fee.
Thankyou for any feedback.

 

[stanley]

I've never heard of them but it sounds a bit rich to be charging you $500 and then a get a kickback from the lender as well.

Some brokers are now splitting their commission with the customer... i imagine this is because of the high competition with a mortgage broker on every street corner.

BTW, it's amazing this industry is not regulated yet considering the amount of money that people are borrowing these days.

 

[Aceyducey]

Julliet,

There are a number of excellent brokers who regularly post on this forum.

(That's cause the bad ones get found out fast and leave )

I suggest you talk to some of them rather than the mob you're dealing with.

Cheers,

Aceyducey

 

[geoffw]

$500 is surprising.

Is this just a refundable charge- ie, if they arrange a loan, the $500 is refundable?

I've just been through a process where MB has arranged a loan- but due diligence has meant the loan will not go ahead. MB has done a heap of work for no return.

 

[DaleGG]

Hi

I find the notion of such a fee dishonest and we stop using brokers who act in such a way without integrity.

Dale

 

[Lissy]

Fees are certainly a difficult area with mortgage brokers.
I tend to look at what the broker can give me in return for the fee.
If I was looking for a new home loan, or perhaps buying my first IP with equity in my PPOR, then I certainly wouldn't pay a fee, that is extremely straightforward (mostly!) and should be done by the mortgage broker no trouble at all.
For my own circumstances, however, finding loans can take a lot of work and effort, and there are times when it just doesn't work out. In that scenario I don't mind paying a modest fee when it's successful. After all, the broker makes my life a lot easier! Plus a lot of the loans I now qualify for involve 1 or 2% upfront anyway, to replace mortgage insurance (which I don't qualify for) so a $500 fee to get a more standard loan is peanuts!!!
In the end, if the broker's good enough to find a solution that gets me more houses, then he/she is worth it.
I'd rather find a broker who can find solutions for free though!!!!! Hasn't happened yet.

 

[geronimo]

Hi Julliet

The question should be whether they can offer any more services than a fee free broker can.

If they cannot, then why use them when there are plenty of good free brokers around? Comes down to value for money and whether you feel they are good enough to warrant the fee they charge.

Definately query whether the fee is refundable if you decide not to go through with it, or the deal falls over.

Brendon
-------------------------------------------------
Acute Mortgage Reductions
www.acutemr.com.au
[email protected]

 

[Rolf Latham]

Hiya

Fees are an issue where one need to make their own judgement call, and are a very old argument in the broking industry

Whilst my service is generally free of upfront fees, if I wanted to charge a fee then this would in most instances be legal and ethical where so disclosed to the client. The client would then make a commercial decision if that is a viable proposition for the level of service offered.

This goes in reverse as well where some of the rebate companies offer a demonstrated different level of service and knowledge than most others.


Stanley, I take great offense at the term 'kickback". Dictionary.com describes the term as

A return of a percentage of a sum of money already received, typically as a result of pressure, coercion, or a secret agreement.

I, and most others that I know in our industry do not pressure, coerce or have secret arrangments.


Ta

rolf

 

[stanley]

Stanley, I take great offense at the term 'kickback". Dictionary.com describes the term as
A return of a percentage of a sum of money already received, typically as a result of pressure, coercion, or a secret agreement.
I, and most others that I know in our industry do not pressure, coerce or have secret arrangments.

Rolf, don't be offended. It was a term i used loosely... semantics.

 

[Rolf Latham]

Hiya

I had hoped so

Soapbox off.

Ta

rolf

 

[Fusion]

Hi there

I'm a first time writer, so go easy on me.

As a mortgage broker I get annoyed when I here of people getting charged fees by oter brokers. Many of these fees act as a "commitment" fee, and attempt to tie clients in, so they feel obligated to use them.

How many times have we all in a buying situation, and we get pressured to "act now", this is no different.

Mortgage Brokers are here to help people make the right choices, and that is all to do with having options. By charging someone a fee, you effectively remove their choice, or freedom of movement.

Mortgage Brokers who are any good at what they do, should not have to charge a fee at all.

Unless someone is 100% comfortable with the service, and advice that I offer, why would I mind if they approached other brokers or banks. So why would I need to charge a "commitment fee".

Good luck in your new mortgage.

Cheers,
Mike

 

[geoffw]

Mike,

I understand what you're saying.

And I guess you have to be comfortable with the fact that you will spend a lot of time working with a client- and then that client chooses not to go with you. If it was just because their deal fell through, it's just bad luck. But would you have clients for whom you have done a lot of work, found a good lender for them, and then had them go to another broker, or even direct to the lender, to cut you out?

MrsW is in the travel industry, and that happens quite frequently to her. That's a reason why many in the travel industry would like to charge for time spent on a quote- refundable against money spent on the trip. Additionally, many suppliers are deliberately trying to squeeze out travel agents- or even have them charge a surcharge on top of a published fare which has no commission built in.

I can see the possibility of paralells with the mortgage broking profession.

 

[JumJones]

G'day.

I've used MF Simmonds in the past - 0 fee. Lots of work, done professionally and above reproach. They even worked on helping out on a loan that in the end they werent going to get a commisson from.

I dealt with Kylie, not Medine.

I will use them again.

 

[Fusion]

Hi Geoff,

I feel like the travel agency business and mortgage broking are different areas of business, that are that comparable. I say this because travel has margins built in which may be quite flexible, and each business chooses how it prices the flights, accomodation etc. Where as is mortgage broking the T&C's of each loan, the interest rate and costs are set by the bank.

Within the marketplace "most" banks appreciate the role Mortgage Brokers perform, and accordingly want to look after that area of business. Effectively this means that everybody, be it a bank manager, or another mortgage broker, should offer the same product. If that is the case, then a client going with someone else would indicate to me that it is a personality issue, and not a product issue.

One of the hardest things I had to learn when setting up my business, particularly when cashflow was an issue, was expecting to write a loan just because I'd put in some ground work. As they say "an expectation unfulfilled will only lead to upset".

So I'm not necessary disagreeing with you, just looking from a different point of view.

Cheers,
Mike

 

[DaleGG]

Hi Jum

I have heard that Medine's firm now charges an upfront fee of about $1,000..... do you know if this is true?

Dale

 

[Doons]

Mb

I am currently arranging a loan using MF Simmons, to my knowledge there isn't any fee but I am confirming this, will let you know...

 

[Rolf Latham]

Hi Mike

Welcome to the forum..........

I too used to feel that way about charging an upfront fee. But it truly depends on what sort of business you run.

The problem here is that an assumption is made that because a broker gets a commission (on a succesful sale I might add) they should not be entitled to charge a separate fee. If you run a high service level business, quite often the commission is not enough to make a profit. If the fee is disclosed, upfront I clearly can not see how there is an issue with that unless the fee is for a service not provided.

Not being able to set your own fees and charges goes against the basic principles of free enterprise,

For example:

Medical

A GP can bulk bill, can part charge or fully charge whatever fee is appropriate for their service.

Legal.

You can get legal advise from free to hundreds of $

Accounting:

You can get a basic tax rtn done for $ 70 or the same rtn done and be charged $ 150


Financial Planning:

Fee for service plans, and comms, or no fee and comms etc etc


ta

rolf

 

[Aceyducey]

I can see you point of view Fusion.

Note that a rebate to the client of part of the fee received by the mortgage broker from the lender could also be considered a way of locking in clients & reducing choice.

Cheers,

Aceyducey

 

[Fusion]

It's all about choice, and looking after the clients best interests.

Having them committed to you by way of an upfront fee, feels like a lack on trust and communication to me, and that's not how I want to do business.

I may be proven wrong over time, but I truely believe life is abundant, and that it's up to us to invite that into our lives.

Anyway got to fly, as I have three appointments with client's, all of which will be free of fees and charges.

Good night to one and all.

 

[Doons]

fees

I have double checked and mf simmonds do charge a fee. Apparently it is around $500.
I am happy to pay this as the service I have received has been top shelf and hassle free. I consider my time to be very valuable and as broking is not my speciality, I am happy to handball to someone else.....I also understand the fee is to a scale of borrowings and can be discounted for various reasons.