S
Stan101
Guest
It seems that tracker mortgage rates are always less than variable rates. So why doesn't everyone change to tracker?. Am I missing something ?.
There really is no need to be so snide. Can you please answer the points without being so dismissive ?Gawd - I wish there was a "banging your head against a brick wall" smilie! OK, as calmly as I can;
This differs from previous posts that you have made here, where you stated that any commission rebate in excess of your fees are taxable. Which is correct?The Revenue have confirmed to us that they view the refund as a rebate of the fee so there is no tax issue.
Erm, no ! From personal experience, the threat of going through a broker for a financial product has usually resulted in either a discount or a refund of commission. No need to pay for a middle man.…there is no difference in cost between using a broker and going to the institution directly.
Brokers feed off the fear, uncertainty, and doubt that many consumers have when it comes to dealing with financial institutions. Financially literate consumers, such as AAM contributors, shouldn’t need the “help” of a mortgage broker.…given that brokers account for 40% of the Irish mortgage market we can't be completely useless.
Erm, no ! From personal experience, the threat of going through a broker for a financial product has usually resulted in either a discount or a refund of commission. No need to pay for a middle man.
Brokers feed off the fear, uncertainty, and doubt that many consumers have when it comes to dealing with financial institutions. Financially literate consumers, such as AAM contributors, shouldn’t need the “help” of a mortgage broker.
As the commission refund never exceeds the fee there is no tax payable. We have operated this system since 1996 and there have been no issues whatsoever with the Revenue.
YesAlso did you declare this income to the Revenue?
No, but few of them have the time or interest to look into the matter, so they turn to a broker or a bank manager for advice. The result is that they often get sold inappropriate products.Are you insinuating that borrowers who use brokers are financially illiterate who we browbeat into submission?
As has been often cited here, Irish financial journalists ain't always as hot as they could be.What about the journalists who both write about REA and use our services personally?
Again, no need for the sarcasm.Gee, it's great to know that we've finally managed to fool all the people all the time!!!
"Last month the typical REA client received a commission refund of over €1,500. Don't make a costly mistake!"
How do you reconcile this with your remark:
Quote:
As the commission refund never exceeds the fee there is no tax payable. We have operated this system since 1996 and there have been no issues whatsoever with the Revenue.
It's very simple. We charge the client a fee, this fee depends on the size of the mortgage (for example mortgages between €250,000 and €300,000 are charged at €2995 + VAT or €3623.95). The fee includes the professional fee of a REA panel solicitor to handle the conveyancing (excluding outlays). It also includes a full refund of the commission paid to REA by the lender therefore ensuring our advice is unbiased. If someone is borrowing €250,000 their net cost is €1123.95 (€3623.95 - €2500) to include solicitor and VAT. If they borrow €300,000 the net cost falls to €623.95 (€3623.95 - €3000).
Did you advise all the recipients of this €1,500+ to "register as a mortgage intermediary with ISFRA, pay the appropriate membership fees, take out professional indemnity insurance and prepare to sit the required examinations."? I trust you did !
Few financially literate people, such as the population of AAM contributors should need such a service, or do you regard contributors here as being as "financially illiterate" ?
The result is that they often get sold inappropriate products.
As has been often cited here, Irish financial journalists ain't always as hot as they could be.