Answers To All Your Questions
Everything you need to know about our Value-based Mortgage Service
So how does a 'Value-based' Mortgage Service work? How does it save me so much money?
We charge a simple advice fee instead of receiving Broker Commissions. With a 'Value-based' Mortgage we have arranged that your Lender will pay to you 100% (ex. GST) of the upfront commission after settlement and then a monthly trailing commission for the life of your loan. These commission rebates when banked against the loan reduce your interest costs meaning more of your repayments go towards paying off the principle debt. Not only do you save interest but by paying your home off sooner you'll save the monthly mortgage repayments.
Are my mortgage repayments and interest rates the same (or better)?
Our 'Value-based' Mortgage is not a loan product - it's our service offering. With more than 30 Lenders and 100's of loan products on our panel we'll work to get you the most suitable loan at competitive rates. SAME LENDERS - SAME LOAN PRODUCTS - SAME COMPETITIVE RATES but... You get paid the Commissions
It seems too good to be true? What’s the catch?
There is no catch. We're paid an advice fee for our services. We believe the amount of commissions paid to Brokers far exceeds the true value of the service provided. In fact, we don't believe in getting paid commissions at all! Our fee-for-service approach is fair, provides to you a significant benefit and is the right thing to do.
What’s an Offset Account? How does it work?
A 100% Interest Offset Account is just a savings account but it's linked to your home loan. Any funds in your Offset account are taken into consideration and reduce the home loan balance on which the interest charges are calculated. The more held in Offset - the less interest you pay. This means with each monthly mortgage repayment you make less gets swallowed up by interest costs and more goes towards paying off the original loan amount.
You charge me an Advice Fee – how long before what I get back in Commissions covers my cost outlay?
This will vary dependent on your loan size, term of loan and any additional payments you make or save in offset. Our professional obligation is to always work in your best interest. We guarantee that if our advice is to refinance with a 'Value-based' Mortgage then you will be in a better position.
What Guarantees do I have that I will get paid the Commissions for the life of the Loan?
It's your Lender that pays the commissions. These commissions are paid directly to your nominated bank account each month via the commission aggregation system and arrangements we hold with our Credit Licensee, Vow Financial Pty Ltd.