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ISCOVER
Staff Reporter
Homeloans has written to its broker partners to advise them that it will introduce clawbacks on loans repaid within 18 months.
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From 1 July onwards, loans that are paid within 12 months will be subject to 100 per cent claw back on upfront commissions, with 50 per cent for loans repaid between 12 and 18 months.
But despite the clawbacks, Homeloans general manager third party sales Tony Carn said the lender would remain a very competitive alternative to the majors.
Mr Carn said the lender had no plans to change its current fee structure. As such, its entry fee, ongoing fee structure and interest rate structure will remain unchanged.
“The removal of DEFs eliminates consumer uncertainty, places Homeloans on an equal footing with the banks and means we are a true alternative,” Mr Carn said.
“This is a great opportunity to offer real choice to consumers, particularly as many remain dissatisfied with the limited range of lenders they feel forced to deal with.
“There is currently a lot of competition in the market, and a lot of banks are offering very attractive headline rates. But it must be remembered that behind most great interest rates there is often a sizeable annual fee – and that can mean that the real cost to a borrower is greater than it seems, and often increases over time. At Homeloans we offer some great alternative products – without ongoing fees.”
Mr Carn said he was confident that the DEF ban would be a positive thing for the industry over the longer term.
“We believe it will see in a new era of competitive opportunity for the Australian mortgage broking industry.
“Consumers will now have the ability to consider their home loan partner without being clouded by potential issues regarding future exit costs.”
