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The mortgage manager has announced reduced clawbacks and further enhancements on another one of its product lines.
Mortgage manager Rate Money has removed application and valuation fees and reduced clawbacks for its brokers on its Think Money product line for loans up to $2.5 million.
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Rate Money has confirmed that this product line now carries no clawbacks on loans held for 12 months or longer when a property is sold, with a reduction on clawbacks of 75 per cent for loans held less than nine months and 50 per cent for less than 12 months.
Additionally, the enhancements to the Think Money product line include reduced rates of up to 0.35 per cent across low doc and 0.20 per cent for full doc loans along with unrestricted cash withdrawals for business purposes and the ability to settle ATO tax debts.
These enhancements followed Rate Money removing clawbacks and fees for its House Money product line back in July 2023.
Previously, the Rate Money House Money line clawed back broker commissions if a loan was refinanced within 12 months, however, those clawbacks and fees were entirely removed.
Speaking to The Adviser, Rate Money chief executive Ryan Gair said the recent moves they’ve made in removing and reducing clawbacks across its product range are “market-leading”.
“While we’ve removed clawbacks entirely from our House Money product, we’ve made other enhancements to the Think Money loans, including the removal of all valuation and application fees, as well as the reduction or removal of clawbacks depending on the how long the loan is held for,” Mr Gair said.
“This provides different options depending on the loan amount and the risk that goes with that.”
Commenting on the Think Money line improvements, Mr Gair added: With home buyers now needing at least six-figure savings for a standard 20 per cent deposit, every dollar really does count.
“On top of the deposit, the fees and costs associated with buying a home make the process complex for buyers, and challenging for the brokers supporting them.
“If you’re self-employed, it can be an even bigger struggle because of the additional ‘proof of income’ hurdles.”
According to Mr Gair, the changes and improvements were made as part of the mortgage manager’s commitment to provide brokers and borrowers alike with a “more transparent home loan experience and to ensure brokers are rewarded for their hard work”.
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