Loans Australia does not charge its clients directly for Residential mortgage selection and settlement. Loans Australia receives a commission fee from our Lender Panel for placing a client with them. Lenders generally pay two types of fees.
The first fee is called an upfront commission, which generally ranges from 0.40% to 0.70% and is generally based on the drawn down balance of the loan. For non-standard residential loans the commission could be more. Non-conforming lenders pay higher upfront commissions of approximately 1-2% however they are only used as a lender of last resort or in special circumstances which is determined by the borrower’s financial circumstances. The second fee is called a trailer fee and is approximately 0.25% per annum of the outstanding loan balance.
The commission fees received are used to develop the business especially in the area of building systems and improving our service delivery to clients.
Loans Australia will charge fees for specialist finance applications for example, business, commercial, car and equipment financing and deposit bonds. If fees are charged by Loans Australia they are disclosed upfront and provided in writing before proceeding with any application.
Loans Australia fully discloses all fees and commissions as part of our full disclosure policy. A full list of our commissions are listed in our Finance Broking Contract / Agreement which is received by each client prior to signing the loan application.