We will always outline to you upfront; any potential fees, commissions or referrer fees from service providers including for insurance or accounting.
We are committed to building trusted long-term relationships; therefore, transparency is essential. Our portfolio of long-term customers is our testament of this.
Our Commercial Loan Service Fee
We can charge depending on the complexity of the commercial loan an upfront fee estimated by calculating the number of hours generally we would work on the deal by an hourly amount of $250 plus GST. As an example, if we worked on a new business deal that we estimate will take 5 hours to complete, the fee would be $1,250 plus GST. This calculation also applies when we offer consultancy services.
Our fees will be invoiced to you and payment will be required 14 days after the invoice has issued.
Should your loan be drawn, AAP Finance Brokers will receive an upfront fee and trail commission (see below for full details). Once the first payment is made by the lender to us, we will refund you back the invoiced consultation fees.
Periodic Review Fee
For a 6 or 12 month review of your existing financial arrangements we will not charge a fee. If you would like this to be more regular such as a monthly or quarterly arrangement, the service fee of $250.00 plus GST per hour will be charged.
This will be invoiced to you and payment will be required 14 days after the invoice has issued.
Mortgage Brokering Fees and Trail Commissions
Our income is generated from fees and trail commissions paid by the lender in which the loan is with. These vary from lender to lender, but as a general rule we attract between 0.50% and 0.70% of the total loan amount as our upfront fee. For example, a $300,000 Home loan will attract a up front fee of between $1,500 to $2,100.
Trail commissions are on average between 0.15% to 0.20% and are paid by the lender on a monthly basis, and is calculated on the outstanding balance of the loan – usually on the anniversary month of the loan being drawn. These commissions are paid on the life of the loan.
Generally, business lending including, motor vehicle leasing and equipment finance attracts an up front fee negotiated between AAP Finance Brokers and the lender. These can vary from lender to lender and we will advise you prior to going ahead with any funding proposal.
Some lenders also offer a trail commission and again we will advise you once confirmed.
We charge a consultancy fee of $250.00 per hour plus GST. Should the work be extensive we are happy to negotiate a monthly fee. Please contact us to discuss.
Other Fees for Service
AAP Finance Brokers can also receive upfront referrers fee’s when we offer insurance, financial planning or accounting referrals. This is determined at the time between ourselves and the service provider, and we will advise you of this upon confirmation of the fee.