If I was a mortgage broker or using an MB for my portfolio, and if I continually pay off loan say within 9 months on an average 3 bed IP @ 250K – What would the commission be to an MB if charging @ 0.8 %
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I plan to live to be 127 yo, so I have plenty ( ~90 years ) time to become an MB.
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It depends on the lender. Some don’t claw back and others have different time frames. But if they do claw back then I believe it is normally at 100%.
If this is your plan then tell your broker. He should then find you a product that wont penalise you for early payout. Interest rate may not be the number one consideration for you in this case.
If you hide this fact from your broker then he prob wont identify the best loan for you and who can blame him if he doesn’t know the full story.
Would he recommend the best loan for you if he knew he wouldn’t keep the commission? I guess we all have different takes on that one. Build up a relationship with a broker you trust is probably the best advice here.
Seeing as you are still in your first trimester you’ll acquire about 120 properties at this rate – good going!
Re broker commission – lenders not only want to claw back commission from brokers but they are also smart enough to spot a pattern and if you are genuinely buying and paying off houses this quickly you may start hitting problems with getting new loans approved at all after 3-4 houses. They generally break even around 18-24 months, so you’ll be seen as an expense they can live without. Not discouraging you at all, in fact v keen to know your secret [] but just a word of warning.
Also to reiterate Simon’s point – tell your broker EVERYTHING!