Gidday Alistair,Borrowers interested in saving the 18% of loan amount (or 12.55% in interest and fees) can see the mortgage rebates they receive form at least one ORP mortgage broker paying them here: http://www.matesratesmortgagebrokers.com.au/mates_rates_mortgage_broker_commissions.htmlI am unsure of your motivation, however you are…[Read more]

That would be 'n' as in 'no' intention to mislead.

Thanks Dan42,I appreciate your perspective, however you will see me state time and time again that it is expressed as a portion of the loan amount. If these two ideas became separated somewhere along the way, I apologise.As a point of clarification, the retail cost of this home loan (ie. fees and charges) adopting the variables above is…[Read more]

Gidday Lukentel,You are incorrect. The 18%+ saving on loan amount is based on real life examples (although plugging in the NAB-Homeside commissions which you have understated).I understand why you are cynical about mortgage matters given there is so much baloney out there. Being able to objectively cut through that baloney is how I got my job a…[Read more]

Gidday Dan,This tracks back to a matter that Alistair disagrees with.Borrowers I spoke with have the rebates paid directly to their mortgage accounts and this in turn creates interest offset savings in addition to the 'free' money they get from the mortgage rebates.So the saving that is realised are:Mortgage Rebates paid to the borrower + Interest…[Read more]

Gidday Alistair,I presume you are referring to the savings to the borrower of 18% in the above example (actually it's probably higher as I didn't model the 6 year+ step in because NAB – Homeside are the exception as you know.)If so, I'm not sure what you don't understand as this is the same basic modelling you would need to use to get to make…[Read more]

Gidday Lukentel,Good point. NAB’s Homeside products have generous commissions.Instead of saving up to 15% with an ORP mortgage broker, NAB’s Homeside borrowers would save 18% with the identical product compared to obtaining it through a non rebating broker – Yikes!I tend not to focus on NAB as they are quite unique, including their approach on St…[Read more]

Gidday PosEnterprises,RHG isn't one we track too closely for obvious reasons.Last update for 2 year fixed was suitably horrifying at 8.05% as at June this year which is slightly less ridiculous today than it was back then, but not by much.It may or may not have moved since and if you are thinking about fixing for 2 with RHG, you might also want to…[Read more]

Hello Vucko,Rates are the retail rack rates and do not include significant savings from:1. MAV/Wealth discounts – 0.15% p.a. off Fixed Rates and;2. ORP Mortgage Rebates – 0.20% p.a. Y2 onwardsSo the effective rates are quite a bit lower if you structured and sourced with these in mind.In view of the my delay, I've compiled and charted 1 thru  5…[Read more]

Gidday Vucko84,Sorry, I have been off work due to personal matters – I'll compile the data across the weekend and post it for you early next week (hopefully Monday!)

Gidday Vucko,Sorry, I need you to pick 3 or 5 years and a 12 month window. Remember, this is a freebie.

Don't ask, don't get Richard.

Gidday Terry,Remember, we are talking about brokers that rebate up to 100% of trailing commission in the case of ORP. Like you, those firms and brokers don't have to, they simply want to help borrowers leap ahead further than the next guy or gal (you'd have to agree that 15% of the loan amount in savings is a BIG boost).On that note, I'll take…[Read more]

Gidday Vucko84,If you can give me a specific Fixed term (i.e. 3 years), I can get that for you.

Gidday Julito,The short answer is that Lenders Mortgage Insurance insures the lender, which means they can decide when it is necessary and when it is not – A lender can charge LMI at an LVR of 20% if they want to. It's up to the lender and it's one of those costs which is not in the Comparison Rate and often overlooked by the rate focussed…[Read more]

Thanks APerry,That's okay, it seems assumption rules in places like this.On quality:I think your perspective that brokers that rebate commission are inferior is flawed. Quite clearly the commission Broker A gets paid with Lender A is exactly the same as completely inexperienced Broker B who just wrote his/her first loan with Lender A (assuming…[Read more]

Gidday again APerry,I'm not altogether clear on what fired you up, or why you feel the need to 'throw' things back at me, however here are the answers to the questions you raise.I agree that borrowers often get the same lender terms (I presume you mean the loan contract terms),  whether they obtain their loan directly from the lender or via a brok…[Read more]

Thanks APerry,My focus is strictly mortgage broking – that sector is complex enough as it is.You raise an interesting point on mortgage broker commissions when you write "why worry if the broker gets paid, particularly if they give you good advice" and there are any number of responses that come to mind.For example, how does the borrower really…[Read more]

Hey, thanks for the support, but the opportunity has closed as the article has to be put to bed early next week.However if they are interested in future opportunities, they can reach me via my profile on this board. That seems to work fine as I have had quite a bit of off forum conversation around this article.Thank you again.

Gidday Daniel,You're on the right track.I only wrote about experienced models for YMM to offer some degree of certainty to the readership, although there are two standouts that are very green (i.e. a few years old), but it's slim pickings on ORP options because it seems to take a special and rare kind of business ethic. And Yes also on the post.…[Read more]