Fees and Commissions
Being Fully Transparent on Fees and Commissions...
OneSite Finance is built on helping First Home Buyers, Upgraders, Home Builders, Property Investors, and those looking to refinance their existing home loans.
We pride ourselves on providing no-obligation, independent advice, and 5-Star customer service.
This is how we, and other Mortgage Brokers get remunerated.
The Obligations of a Mortgage Broker
As a mortgage broker, we are always committed to act in your Best Interests with all of your lending needs.
There are many legislative obligations we must adhere to that ensure your needs and requirements are at the centre of all our work.
These laws, include but are not limited to the National Consumer Credit Protection Act 2009 (Responsible Lending), The Privacy Act 1988, Anti‐Money Laundering and Counter Terrorism Financing Act 2006 (AML/CTF), are designed for your protection.
Overview of The Services a Mortgage Broker Provides
The service a mortgage broker provides is called Credit Assistance. This typically entails:
- Understanding your needs and objectives and current financial circumstances
- Comparing and contrasting hundreds of home loan products and negotiating directly with lenders
- Recommending a home loan solution with a competitive rate that is aligned with your best interests
- Assisting you in completing all the paperwork involved
- Providing advice from application through to settlement, keeping you up to date at every step
- Staying in touch post-settlement to ensure your home loan remains the best fit for you
How We Get Paid
Overall Process
Typically, we are paid by the lender with no additional cost to you* in the following ways:
Initial Payment
When your loan has "settled", the selected lender will pay us an initial payment as a percentage (%) of the "net of offset" (total loan,
less any amount in your linked offset account). This percentage varies by lender however generally ranges between 0.60% and 0.75%
including GST.
If the loan is transferred or is paid out within 2 years of the settlement date, the lender may reclaim some or all of these commissions
from us. This is known as "clawback".
Ongoing Monthly Payments
The selected lender may also pay us an ongoing monthly payment (known as "trail"). This is a percentage (%) calculated and paid on
the outstanding balance of your loan at the end of each month. The percentage varies by lender but is typically around 0.15% including GST.
It is important to note that our advice is always aligned to your best interests and does not take into consideration any variance of commission between lenders.
Net of Offset
Any payment paid by the lender is based upon the loan amount minus any money you have in your offset account. This means if you
take out a $1,000,000 loan and place $900,000 into your offset account, we will only receive a commission based on $100,000.
If you place the entire loan amount into your offset account, we will not get paid until you use those funds. If you do not use those funds in the first 12 months, we will typically not receive any commission in relation to that loan.
Clawback
If the loan is refinanced or is paid out within 2 years of the settlement date, the lender may reclaim the commissions paid out to us. Typically this will be paid back at:
- 100% if the loan is closed within the first 12 months
- 50% if the loan is closed within 12-24 months of the loan's settlement date
If this does occur, there is no cost to you. However, it does mean that regardless of how appreciative you are of the services we provided, we may not be paid for helping you with your loan.
With this in mind, we do request that you share with us any potential plans you may have about selling, refinancing or making any changes to your loan within the initial 24-month timeframe. And if you do decide to make any changes to your loan, that you choose to use our services again.
Regardless of how we are paid by a lender, we are here to help you with any questions both now and throughout the life of your loan.
* In some circumstances, we may charge a fee to cover the additional time and effort required by our team to process your loan application. Any fees are fully disclosed and will be discussed with you in advance so you can make an informed decision before proceeding with your application.
