The True Cost of a Mortgage Broker

Hidden Fees Revealed

Mortgage brokers are often seen as the go-to source for home buyers looking for a loan. However, many people don’t know that mortgage brokers can charge hidden fees that can add up to a lot of money. We will reveal the true cost of using a Mortgage Broker Adelaide and discuss some of the hidden fees that they often charge. We will also provide some tips on how to avoid these fees and get the best deal possible on your home loan.

When using a mortgage broker to source your home loan, you are likely to pay an origination fee. This is typically charged as a percentage of the total loan amount and can range from 0.5% – 2%. The exact fee will depend on the individual broker so it is important to compare different brokers before making your decision.

Mortgage Broker Adelaide

In addition to this upfront fee, many mortgage brokers also charge hidden fees for services such as application processing or appraisal reviews. For example, some brokers may charge an application processing fee for each loan you apply for and this can quickly add up if you are applying for multiple loans. It’s important to be aware of these potential costs before signing any agreement with a broker.

You may also be charged for additional services such as credit reports or appraisals. Again, the exact fees can vary depending on the broker and should always be discussed in advance of agreeing to work with them.

Finally, mortgage brokers may charge a fee for their advice and guidance during the home-buying process. This is typically referred to as an advisory fee and can range from 1% – 3% of the loan amount. It’s important to note that this fee is not necessarily required and many lenders do not charge it so make sure you compare prices between brokers before committing to one.