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  • Profile photo of Most excellentMost excellent
    Member
    @most-excellent
    Join Date: 2003
    Post Count: 100

    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 %
    [?]

    I plan to live to be 127 yo, so I have plenty ( ~90 years ) time to become an MB.
    [8D]

    Michael
    just be “

    Profile photo of Most excellentMost excellent
    Member
    @most-excellent
    Join Date: 2003
    Post Count: 100

    do things differently, create your own paradigms !

    [;)]

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    Michael,

    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.

    Good luck with your longevity!

    Simon Macks
    Mortgage Hunter
    [email protected]
    0425 228 985

    Profile photo of MelanieMelanie
    Member
    @melanie
    Join Date: 2003
    Post Count: 382

    Hi Michael,

    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 [:O] but just a word of warning.

    Also to reiterate Simon’s point – tell your broker EVERYTHING!

    [:)]
    Mel

    Profile photo of Most excellentMost excellent
    Member
    @most-excellent
    Join Date: 2003
    Post Count: 100

    Money is far more persuasive than logical arguments. (Euripides)[;)]

    No secrets ( think outside the paradigms )

    Minds are like parachutes — they only function when open.

    You are very wise Mel, it’s a pleasure to communicate.

    Michael
    just be

Viewing 5 posts - 1 through 5 (of 5 total)

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