It's pretty simple.
I goto a bank and get a rate of 4%pa. Joe Bloggs goes through Broker67 and gets the same rate of 4%pa yet the bank only gets 3.85%pa because they have to pay a 15 bps trail to Broker67. If the bank offered a flat rate of 3.95%pa to everyone isntead, they would benefit as they would overall get more interest from the loan, I would benefit as i pay less interest (3.95%pa vs 4.00%pa), Joe Bloggs would benefit over the course of his loan from 3.95%pa even after paying a flat fee to the broker. This is why i am subsidizing a broker - im currently paying a higher rate overall because the bank has to funnel off money to someone else.
If there are benefits in using a broker (and i do not doubt there is for some people) then there should be no problem for the client in paying a flat fee to the broker.
- Forums
- ASX - By Stock
- MOC
- Mortgage Choice (MOC) Time to buy ?
Mortgage Choice (MOC) Time to buy ?, page-70
-
- There are more pages in this discussion • 169 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add MOC (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
1CG
ONE CLICK GROUP LIMITED
Mark Waller, MD
Mark Waller
MD
Previous Video
Next Video
SPONSORED BY The Market Online