The term ‘Cash Back Mortgage’ is slowly but surely becoming more commonplace within the mortgage industry as brokers take more of a focus on addressing client’s best interests.
Put simply, a cash back mortgage is when the commissions paid to the broker are rebated to the client, usually directed back into their home loan, saving money on their mortgage by reducing the net debt amount. This means less interest is charged, shortening the time it takes to pay off the loan. This helps the client (you) become mortgage free sooner with nil effort!
Mortgage brokers normally take all the commissions
Typically, mortgage brokers receive a commission from the lender you borrow money from. This is why they appear to offer a free service to their clients. These commissions are made up of an upfront payment to the broker, followed by what are referred to as trailing commission payments, usually paid by the lender to a mortgage broker on a monthly basis for the life of the loan.
At Naked Wealth Mortgages we charge a one-off fixed fee regardless of the size of your loan. You can use the commission payments to pay our fee, so all other commission payments are rebated to you until the loan is paid off.
Our service goes well beyond providing you with a great product
On top of all this you receive our financial expertise which goes well beyond mortgage broking, as we are also qualified independent financial planners and authorised tax practitioners. We can help you understand how your mortgage fits into your broader situation and lifestyle goals. Is what you’re planning on doing in your best interests?