No Fee Mortgage Broker

Davies Home Loans won’t Charge you a Brokerage Fee.

Whilst there may be other fees in certain circumstances, we do not charge Brokerage as your chosen bank will pay us. At Davies Home Loans, we think the best way to explain how this works is to use the analogy of a branch loan officer.  If you were to take time off work to visit a branch for a loan, the branch loan officer will conduct the interviews, if they can help, they will offer a product from that bank and prepare and submit all the paperwork with you.  For their efforts they get paid a salary.  In the background, the bank is also paying for the loan officer’s uniform, desk, computer, staff room and other overheads such as building maintenance, electricity and insurance.

When you get a Davies Home Loans Broker to help you, they will listen to your situation, compare this across many lenders and propose a solution.  They will then prepare and submit all the paperwork for you.  For this effort, the bank will pay Davies Home Loans to cover our costs such as salaries, vehicles, computers, staff room, building maintenance, electricity and insurance.

In both cases, banks have already factored all of this into their interest rates.  

If brokers cost more than a branch loan officer, banks would simply hire more loan officers and we would be out of business.  As they are not doing this, clearly we are the lower cost to the bank.

 

mortgage broker banora point
finance lender tweed heads

Serving Tweed Heads & Norther Rivers

Great News

This is great news for you, as we believe that because we cost less than a branch loan officer, when we approach the banks head office for a discount on your interest rate, two things happen.  First the bank is fearful we will change lenders and suggest you go to a more competitive lender, and secondly because we are cheaper, they have a little room to move anyway, hence a better rate than a branch.

Now we all know a branch loan officer can request a discount as well, but we believe when they approach head office for this, they face the consequence of a pay drop to cover this (usually in the form of risking the Christmas Bonus – yes most bank loan officers also get commissions and bonuses).

There is however a third option being DIY.  Yes you can do a loan yourself, but …….

Lenders calculate the interest rate, terms and conditions based on their overheads, just like any other business.  So if you were to do some aspect of the work yourself, hoping to save money, they still need to pay someone (head office loan officer) to check things and as a result they do not compensate people for their time. Nevertheless, the bank does save a bit in this regards. We would only recommend this path to sophisticated borrowers, as when you go the DIY path, if you get it wrong, there is no avenue for compensation.

Now that we have covered that, there are a few questions we often get asked;

Q1.  Why would someone use Davies Home Loans for a loan against a well know big bank brand.

A1.  The answer is simply, that the loan is the same. People can get the big bank brand loan from us.  The bigger question is why would someone got to a branch loan officer, who is obligated under law to look after their employers interests versus a broker who under law must look after the borrower best interest.

Q2.  Doesn’t using a broker costs more than going direct.

A2.  Whether you use a broker or the loan officer in a branch, both are paid by the lender.

Q3.   Surely you can get a better deal going direct to a lender.

A3.   Whatever deal you can get, Davies Home Loans can also get (or better). We deal in hundreds of loans and have access to lots of lenders (including broker only lenders).  Davies Home Loans has a stronger negotiating position.

Q4.  I have been with my current bank for years and I’m sure they will look after me.

A4.  They will do the minimum to keep you happy. Unfortunately Banks are owned by shareholders, they look after the shareholder first.  We suggest chat with us first, get educated and hit your bank with full knowledge of what is out there and available.  Unfortunately all too often they will only offer a token gesture and rarely give existing customers the same as a new customer special.

Q5.  Is there any occasion where Davies Home Loans does charge a fee.

A5.  Yes. Customers can pay for our Mortgage Broker to travel to them if they wish and for some complex or unique situations we may need to charge a fee for our time and resources to determine if a loan is even viable in the first place.

Testimonials

Darren Mccalman
Darren Mccalman
6. June, 2024.
Thanks Davies Home Loans for securing a lower interest rate on my home loan. Saving me time & money. Well done
Jared Phelan
Jared Phelan
30. April, 2024.
Greg and his business really go above and beyond even when things get complicated he will continue to serve you at the best of his abilities and help get threw them with you. -Jared."
Gold Coast Shuttle
Gold Coast Shuttle
8. April, 2024.
I felt very at ease once I spoke on the phone with Narelle, regarding starting our application. Greg is happy to meet with you in person to discuss your application. They made it very easy for you to provide documentation in a way that best suits you. Very understanding of self employment and small business circumstances.
Jacob Guinea
Jacob Guinea
2. April, 2024.
Davies Home Loans worked very hard to help me secure my home loan. They are continuing to work with me to get the best current interest rate available. Thank you Greg and team.
David Scott
David Scott
22. March, 2024.
I received a call today from Rochelle who advised that she recently approached the bank I have a mortgage with on my behalf, and the bank has agreed to reduce my interest rate by a little over 1% p.a., which will save me nearly $2,800 p.a. What service! Thanks very much guys!! David
Deon Louw
Deon Louw
8. March, 2024.
From my home loan to rate negotiations, what an awesome team. Highly recommended!! They really do try and get the best for their customers.
tarra martel
tarra martel
27. February, 2024.
Thank you so much to the team at Davies Home Loans! They are a very rare business that is so proactive. They review our loans (without any prompt from us) which consistently saves us money! We have been with the team for 9 years now. Would absolutely recommend!
Brett Mckenzie
Brett Mckenzie
6. February, 2024.
Excellent service, great communication and would recommend to anyone.
Chris Smith
Chris Smith
7. November, 2023.
Greg and his team went above and beyond with not only providing me the right home loan for my needs, but also helping me from the beginning of my journey to buying my first home. Which included sorting out debt, paying my taxes, saving and budgeting. Greg has been very patient, committed, great with communication and putting things in terms that are easy to understand A massive thankyou, highly recommended 10/10 service
Sharon Barnes
Sharon Barnes
14. September, 2023.
Greg and his team are proficient in arranging home loans perfectly suited to the needs of their clients and knowledgeable in understanding many variety of complex situations of lending. I highly recommend Greg and his team at Davies Home Loans, you won't be disappointed.