We have been sharing our commission since year 2,000 – in fact we came up with idea
We pay you a commission rebate from the upfront that lenders pay us to process your home loan – typically $1,000 cash for every $300,000 of home loan
Peach Home Loans is the mortgage broker who pioneered commission rebates and our unique operation allows us to share our commission with our customers and still remain profitable. Lenders pay us a commission on the upfront (drawn down loan amount) – this is typically $600 per $100,000 of loan amount. We try to recover our some of our processing costs and then share what is left over with you. Lenders also pay us a small trailing commission typically from 0.15% to 0.25% pa paid on the outstanding loan balance … and this is where we try to make our profit… after all we are in business to make a profit.
It is important to understand that these commissions are not added in any way to your mortgage interest rate or fees, you get exactly the same deal and sometimes better and cash back in your pocket
Some loans are much more complex and so are more expensive for us to process while some loans such as offshore borrowers carry a much higher compliance load and so our rebates can vary but we will disclose this to you completely up-front.
We will give you a “Rebate Agreement” that clearly spells out the conditions of the payment. Lenders pay us the upfront commission usually around the end of the month following settlement and once these payments clear our account we will then deposit your rebate into your nominated bank account. Check our testimonials if you don’t believe it. Of course there are conditions, after all as mentioned we have to make a profit to survive and we make our profit from your loan continuing for a reasonable period ( by loan we mean the net balance of your loan after offset is taken into account). You are not locked in to anything, if you want to refinance or restructure that’s fine as long as you allow us to arrange it for you – as this means we will continue to earn our trailing commission. If you dramatically reduce your loan balance ( by loan we mean the net balance of your loan after offset is taken into account) or decide to discharge your loan and go elsewhere within the first 3 years then we reserve the right to request that you repay the rebate – this is extremely rare which we think indicates that we normally do a good job of finding the right product for our clients.
See our main rebate conditions here Rebate conditions
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