Fees and trailing commissions are how mortgage brokers make their money. The banks pay mortgage brokers to send business their way. When using a mortgage broker, banks have to pay them high upfront fees and a trailing commission that is paid annually.
The broker is paid a front-end fee sometimes as high as 0.60%. And in many cases, trail commissions in the vicinity 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. This means Banks can offer more competitive home loan rates and pass the 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.
Joust is able to provide consumers with a digital marketplace where lenders are bidding directly to your device with no middleman, giving total transparency.
Are you interested in learning more about how Joust can help you find the best home loan rates in Australia?