When using a mortgage broker, banks have to pay them high upfront fees and a trailing commission that is paid annually. Fees and trailing commissions are how mortgage brokers make their money. The banks pay mortgage brokers to send business their way.
The broker is paid a front-end fee sometimes as high as 0.60%. And in many cases, trail commissions in the range of 0.35% annually.
The lender often has to keep paying the mortgage broker a commission each year the loan continues. If the home loan is for 30 years, this can add up to be a very large amount.
By removing the mortgage broker and using Joust, there are no trailing commissions. We can deliver you the best home loan rates because banks can pass these savings on to you.
If you select a bank and complete your home loan with them, Joust receives a one-off 0.20% success fee from the bank. This success fee is significantly less than the average mortgage broking up-front fees and trailing commission.
With such a low success fee, Joust is able to provide consumers with a digital marketplace where they can receive these low bids. The lenders are bidding directly to your device with no middleman, giving total transparency.
Are you interested in learning more about how Joust can get you the best home loan rates in Australia?