Do mortgage brokers get paid?

E

Esme

Registered User
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113
Hi

My mortgage broker is charging me €1,500 for his "services" and my sister is also getting a mortgage from him too and he is charging her €1,000.

I've since been told that Mortgage brokers are paid by the institutions and clients shouldn't have to pay them.

Is this true?

Esme
 
It depends.

Some brokers charge you a fee and then refund you any commission they receive from the lender.

Others may charge fees to get you the best deal in lieu of receiving commission from the lender. In theory, this means that they are more incentivised to act in your favour.
 
Some mortgage brokers do charge a fee as well as the commission they receive from the lender and they are entitled to, but many don't so why not go to one who won't charge a fee. Also, €1500 sounds like a huge fee to charge - will this be fefunded to you at any stage eg if you keep your mortgage for x number of years?
 
REA are the only broker who charge fees and refund 100% of the commission paid to us by the lender. There is no way you should be paying broker fees if you are not getting a refund. Don't walk, run!

Sarah

www.rea.ie
 
Any broker i've ever dealt with doesn't charge a fee at all - they get it from the lending institution that you get the mortgage from as commission.

and yeah €1500 is scandalous!
 
Find another broker working on a no fee basis or apply direct to a couple of lenders and see who offers you the best deal. Whatever happens do not use this broker - did you challenge them on why they are charging you €1500 while your sister is only :rolleyes: paying €1000?
 
..I can't believe you are paying any broker any fees, they make more than enough from the instititions...I'm shocked
 
Please clarify who the broker is and what exactly they are charging you for-do you have no option but to use a broker?
 
I didn't know any different to be honest...first house. Its to be ready in 3 weeks, so not sure about running now.

My sister got her cheque today and her solicitor asked her how much she was paying the mortgage broker as he was paying him out of her cheque?

Sounds a bit dodgy to me..
 
CCOVICH said:
Please clarify who the broker is and what exactly they are charging you for-do you have no option but to use a broker?
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I'm not naming names on a public forum, but he is an independent broker and I got my mortgage from Permanent TSB.
 
Define 'independent'?

Is he/she regulated by IFSRA? What is their status?

Query whether they are also getting commission from ptsb.

I don't see the harm in naming them-they haven't necessarily done anything 'wrong', but that's your call.
 
He works for a particular company (Insurance and mortgage brokers). I assume then, he is regulated with the IFSRA?
 
Sarah W said:
REA are the only broker who charge fees and refund 100% of the commission paid to us by the lender.
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Sarah, this is a very sweeping statement. Are you 100% certain that it is true?
 
Given that you've got three weeks before the house is ready - not including snagging - you have plenty of time to go to a broker who doesn't charge fees without refunding commission or going to a lender directly. There is absolutely no justification for paying €1500.....

Sarah

www.rea.ie
 
ubiquitous said:
Sarah, this is a very sweeping statement. Are you 100% certain that it is true?
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As far as I am aware, yes. I have never heard of any company copying our role model which has been in place for nearly 10 years now. This tells me that the "traditional" mortgage broker is earning more per case than REA does but, hey, that's OK - we're doubling our business year on year.

Sarah

www.rea.ie
 
Esme said:
He works for a particular company (Insurance and mortgage brokers). I assume then, he is regulated with the IFSRA?
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The fact should be noted on their correspondence, i.e. that they are regulated by IFSRA and whether they are an authoruised advisor etc.

If he works for a company, can you check if this is company practice and that he isn't trying to make a fast buck on his own?
 
Sarah W said:
As far as I am aware, yes. I have never heard of any company copying our role model which has been in place for nearly 10 years now.
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Dunno about "copying (y)our role model" which again is a rather sweeping assumption, if you don't mind me saying so, but I am aware of some accountancy firms with agencies for mortgage businesss who arrange to have commission payments mandated directly to clients and bill the clients for services rendered. I understand the logic behind this practice is to minimise difficulty with professional regulators re receipt of commissions etc.
 
Nothing "sweeping" about my statement - REA is unique in offering a fee based mortgage advice and conveyancing service with the commission paid by the lender refunded to the client.

I'm sure some accountancy firms may refund commission and bill clients but I very much doubt this is a service they actively promote to Joe Public or even all their own clients.

However I am equally sure you will take issue with this.........

To Esme - do not pay this fee; go to another broker or direct to a lender and spend the €1500 on your new house.

Sarah

www.rea.ie
 
Sarah W said:
However I am equally sure you will take issue with this.........
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Sarah,

If you said black was black and white was white, some people here would take issue with it. Just ignore them - most of us on this forum appreciate your invaluable advice. Or should I qualify that statement as well
 
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