There's a really simple business reason not to be looking at a Refund Home Loans franchise...
There is a lot of discussion in the mortgage broking industry about 'fee for service'. The argument being that brokers should be charging a fee for their advice.
The pros and cons of fee for service are many, but I do beleive that if this became common practice, lenders would initially reduce, then stop paying commissions to brokers.
The Refund Home Loans model is to collect the commission from the lender, then 'refund' part of this commission back to the borrower. They pay you to do business with them. This model obviously looses its marketing impact if they have to collect a fee up front only to give some of it back later.
Personally I hope mortgage brokers don't go to a uniform fee for service model. It would mean a lot of brokers go out of business and it would reduce competition in the mortgage markets to almost nothing. Most brokers would shut shop. It would be guaranteed death knell for every Refund Home Loans franchise.
There is a lot of discussion in the mortgage broking industry about 'fee for service'. The argument being that brokers should be charging a fee for their advice.
The pros and cons of fee for service are many, but I do beleive that if this became common practice, lenders would initially reduce, then stop paying commissions to brokers.
The Refund Home Loans model is to collect the commission from the lender, then 'refund' part of this commission back to the borrower. They pay you to do business with them. This model obviously looses its marketing impact if they have to collect a fee up front only to give some of it back later.
Personally I hope mortgage brokers don't go to a uniform fee for service model. It would mean a lot of brokers go out of business and it would reduce competition in the mortgage markets to almost nothing. Most brokers would shut shop. It would be guaranteed death knell for every Refund Home Loans franchise.
