Young Gun Brokers

[Brady]

Broker B will likely set things up to get all the trail for all loans. Broker A will no longer receive any trail. Franky if Broker A is no longer servicing you, they don't deserve it anyway.

Haha I won't go there

 

[Brady]

I have been thinking of becoming a broker as well, I know its long hours, but I feel that if you are good at it, and your reputation is/becomes good, once it starts going well, it will snowball into sucesss

Forum could do with a broker

 

[TMNT]

That sounds not very fair

So if I get a 1m loan, my broker does all the hard work

Three months later I do a top up of 1.01m

Then broker B gets all the commissions for the 1.01????

 

[westminster]

That sounds not very fair

So if I get a 1m loan, my broker does all the hard work

Three months later I do a top up of 1.01m

Then broker B gets all the commissions for the 1.01????

That's why you offer good service and keep in touch so they use you for the first loan and the top up

 

[Peter_Tersteeg]

Assuming it stays with the same lender, in most cases Broker B gets an up front commission on 10k plus any trail on the full $1.01M. Broker A retains the upfront on the original $1M.

If you move to a different lender, Broker A gets a claw back for the $1M, the loan's closed so they'd get no trail. Broker B would get Upfront and ongoing trail from $1.01M.

You wouldn't write a loan or do a top up for $10k just for the commission, even a $100k loan is at best a break even scenario for the broker. It's often more work to get a loan approved for $100k than it is for $1M.

There's a lot of different circumstances in which this could be either reasonable or unfair towards either broker. How do you think this is unfair and to which broker?

 

[D.T.]

That sounds not very fair

So if I get a 1m loan, my broker does all the hard work

Three months later I do a top up of 1.01m

Then broker B gets all the commissions for the 1.01????

Mustnt have done a very good job, otherwise why would you seek out broker b?

 

[TMNT]

Assuming it stays with the same lender, in most cases Broker B gets an up front commission on 10k plus any trail on the full $1.01M. Broker A retains the upfront on the original $1M.

If you move to a different lender, Broker A gets a claw back for the $1M, the loan's closed so they'd get no trail. Broker B would get Upfront and ongoing trail from $1.01M.

You wouldn't writ

e a loan or do a top up for $10k just for the commission, even a $100k loan is at best a break even scenario for the broker. It's often more work to get a loan approved for $100k than it is for $1M.

There's a lot of different circumstances in which this could be either reasonable or unfair towards either broker. How do you think this is unfair and to which broker?

Let's say you get a new client, discuss your options, introduce different lenders, go through the paperwork to setup a large loan, do lots of hard work

To find the next broker simply does a small top up and gets all the trailing commissions for the full amount??

I'd feel royally jibbed

 

[Teshy]

Let's say you get a new client, discuss your options, introduce different lenders, go through the paperwork to setup a large loan, do lots of hard work

To find the next broker simply does a small top up and gets all the trailing commissions for the full amount??

I'd feel royally jibbed

Don't you get handsome upfront commission for doing hard work?

 

[Jamie M]

To find the next broker simply does a small top up and gets all the trailing commissions for the full amount??

I'd feel royally jibbed

That's why it can't be treated is a single transaction. There needs to be an ongoing relationship between broker and client. If the client requires a top-up, the broker should be the first person they contact. If the client goes elsewhere, then it could be for good reason.

Cheers

Jamie

 

[tobe]

How about this scenario. Broker A does loads of hard work, gets fantastic loan approved, customer is extremely satisfied, realises how much effort was involved, doesnt want to bother the broker just to do a tiny top up of $10k, goes into the branch.....

branch rewrites the loan, upfront is clawed back on the whole lot, broker loses trail, branch also forgoes part of their monthly bonus to give the client .1% further discount.....

This doesnt happen nearly as ofter as it used to, most lenders now understand its cheaper to have brokers writing their loans than branch staff. Most lenders have systems in place to stop this sort of thing now, but pre GFC it was a constant source of worry for many brokers.

It may have influenced them to write non bank loans. Still today many non bank lenders use 'not having a branch network' and the broker being the main contact point as a point of diference.

These days CBA have the brokers name on the home loan statement, which is a great turnaround.

 

[Scott No Mates]

It doesn't surprise me that the average life of a loan is only 3 years considering that most people change dwelling every 7 years.

Can someone please explain to me what a $200k loan is and what can you buy in Newcastle, Gosford, Sydney, Wollongong for that price? (or is that purely conjecture? )