Home Loan Rebates

Yes we still pay rebates!

There is an old saying "nothing comes from nothing" and that is absolutely true of our rebates.

We are paid a commission by lenders of around one half of one percent ( 0.50%) as an upfront commission ie: on the initial balance of the loan. Out of that we have to cover our costs for the writing the loan and these are typically in excess of $1200 although it can be a lot more than this on complicated deals or with some lenders who just seem to delight in making life difficult. We pay our rebate to you out of the balance of this upfront commission - once we receive the commission.

Why don't we pay rebate on our trail commission? Well trail commission is an unknown quantity - yes lenders typically pay around 0.15% in trail but many lenders don't pay this in year one or even year two. What we do earn in trail is our profit - naturally we deserve to make a profit don't we.

What's more if for any reason you refinance within the first 18 months many lenders take all or maybe half of all our upfront (clawback) and so we end up losing money and we obviously can't afford to do that and so we have to ask you to pay back the rebate we have paid to you. This applies during the first 3 years - however if we arrange your new finance and we earn a new upfront ( to replace what we have lost ) we don't enforce the rebate clawback.

Borrowing can be a complex process, so why not try Peach's personal and easy service.