Can You Negotiate Mortgage Broker Fees?
Many brokers do not charge fees, relying solely on commission to get paid. However, some brokers may charge various fees, such as commitment fees, administration fees, etc., that they refund after settlement. These fees are to help give them some income in case it takes a while for the settlement to be finalised. These fees also help ensure they are paid for the research, advice, and consultation for borrowers if the borrower turns to a different mortgage broker. As a result, most mortgage broker fees are non-negotiable.
Instead of Negotiating Broker Fees, What Can I Negotiate?
If your broker charges fees, they may impact the final cost of your home loan. Instead of trying to negotiate these often refundable fees, try negotiating some of the following:
- Interest rate: negotiating your interest rate could save you thousands of dollars over your loan term. One way to increase your negotiating power is by going to a meeting with your broker armed with an interest rate comparison list. You can use an online comparison tool to compare the national interest rate average with the average rate offered by lenders.
- Loan Term: the length of your loan term can impact how much interest you pay. A longer loan term results in lower monthly repayment amounts but results in you paying a higher amount of interest. A shorter loan term results in higher monthly repayments but saves you money overall by paying less interest.
- Features: your broker may be able to find you a loan with beneficial features such as offset accounts, lines of credit, or savings accounts.
If you are looking for a mortgage broker with honest, upfront fees that can find you loans with lower interest rates and better features, call the experts at Mortgage House.