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Paying exit fees to a mortgage broker

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Lisa Ferron | 30 Oct 2012, 08:52 AM Agree 0
Hi we have just refinanced our home and used the same mortgage broker we used to buy the home in the first place 5 years ago. However 2 months into the new mortgage my husband got retrenched and we have decided to return to Scotland as his job prospects here are bleak. I was worried about exit fees from the new mortgage but my broker advised me that whilst I don't have to pay the bank anything I do have to pay her the $5,000 she would have received from the bank as now we are leaving she won't get paid by them for arranging the mortgage. Is this correct? She has said she will negotiate this fee with us due to our circumstances but asked us what we were willing to pay!
  • Daniel | 14 Nov 2012, 11:22 AM Agree 0
    No. You don't need to pay anything to her. That is the issue between her and the bank.
  • Eos Property | 21 Nov 2012, 10:40 AM Agree 0
    Did your broker provide you with a service agreement or similar?

    If so did the service agreement cover such eventualities. Chances are it may have - banks frequently claw back part/all of their broker commissions if the loan is refinanced 'early'. Your broker may have taken steps to pass this claw back onto you. Given the loan only lasted for two months the bank claw back could be significant.

    Having said all of that the broker could also be trying it on.
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