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.
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
Julie McNeil20. March, 2023.A big thanks to Greg and his team for securing a reduced interest rate on my home loan.
Troy L28. February, 2023.Just wanted to thank you for your ongoing services throughout my continued loan process. Just opened your mail then and realised you had recently successfully negotiated a lower interest rate for me. Thank you as always for your professionalism.
Jennifer McDonald16. February, 2023.Almost 9 years ago Greg and his team were recommended to us for our first home loan. The support provided in navigating that life changing event surpassed all expectations and I’m very grateful to have had Greg on our side. Even more impressive is the constant updates and support we have had in continuing to keep our interest rate competitive in the current market. I highly recommend Davies Home Loans to anyone needing financial services. Thanks so much Greg!
cherie lambert19. January, 2023.Had our meeting, was very informative, will be continuing the loan process. Look forward to our next meeting.
Belinda Hyett18. January, 2023.The team at Davies Home Loans were excellent. Constant help along the way. Making the application and data gathering process and ease. Also the updates were appreciated. Now that we have found Davies Home Loans our opportunities are endless. The knowledge and network Greg provides, followed by the outstanding service of the office staff and the technology used. We are no longer scared of the borrowing process and sharing our thoughts or ideas for our future. We feel in safe, knowledgeable and caring hands.
Diana Teese3. January, 2023.Greg and all the team at Davies Home Loans continue to look after our best lending interests year after year. They have great knowledge of the industry and make themselves readily available to help with any questions big or small. They have just saved us $1109/year from one quick and easy request to our bank.
Jamin Nest22. November, 2022.Great service as always from the team, which at this time managed to save me just under 3k annually. This team has stayed true to their word over the years and has continued to provide ongoing support to its existing clients.
Paul Williams31. October, 2022.I definitely recommend Greg Davies Home Loans, who helped us secure a construction loan for our home build. The post-Covid landscape was radically shifting during our application phase and their knowledge was invaluable in navigating this and adapting our application's specifics. A cannot express how important it is to use a Broker to ensure the outcome that you need!
CleleRB White5. September, 2022.I have been with Davies for many years now. They are so professional and their after service care is exemplary. I don't ever have to ask and they review my loan, contact the bank and negotiate a lower rate anytime there is a change (such as fixed to variable). Then they let me know! Couldn't recommend more.