How we are paid.
Most of the time, our services are completely free. Thats because instead of being paid by you, we receive revenue from our product suppliers like banks and insurers.
We feel it's important you understand how we are paid, after all we ask the exact questions to you when applying for a home loan.
Fees
Circumstances where fees may be charged
Commercial Property Purchase
Speciality Residential Home Loan purchase - Either the result of credit impairment like defaults or the loan is complex by nature. We will inform of you when this is the case.
Fees for lending examples outlined below are charged at 1% of the loan amount.
Loan is intended to be with a lender for less than 2 years.
The lending circumstances are complex in nature and require a great deal of pre-application work.
We do also reserve the right to charge fees at $217.50 + GST per hour. We may do this when charging a percentage of the loan amount isn't appropriate for the circumstances.
Note, we will inform you in writing prior to any fees being applicable. This may be when confirming an approval, and may not be at the very start of our engagement. Often we won't know of any credit issues until after we have submitted an application.
Product Revenue
Mortgage
Mortgage Revenue EasyStreet Mortgages receives when we arrange a mortgage on behalf of a lender.
Our fees are received as a percentage of the loan amount either paid initially when loan starts or in some cases also as a trail or ongoing payment to help service and update the loan over time. These are listed below:
ANZ 0.85% Upfront
BNZ 0.55% Upfront 0.15% Trail
ASB 0.85% Upfront
Co-Operative Bank 0.7% Upfront
SBS 0.8% Upfront
Liberty Financial 0.85% Upfront 0.15% Trail
Avanti 0.85% Upfront
Resimac 0.6% Upfront 0.15% Trail
Sovereign 0.6% Home Loans 0.2% Trail
Insurance
Insurance Revenue EasyStreet Mortgages receives when we arrange an insurance policy on behalf of an insurer.
Our fees are received as a percentage of the annual premium paid initially when loan starts as well as a trail or ongoing payment to help service and update the policy over time. These are listed below:
Personal Insurance
Asteron Life - 150% Upfront, 20% Ongoing Renewal
AIA -
Fidelity Life -
Cigna -
Lumpsum products 230% Upfront, 7.5% Ongoing Renewal
Disability Income - 170% Upfront, 15% Ongoing Renewal
Level Premium Products - 190% Upfront, 7.5% Ongoing Renewal
Partners Life - 210% Upfront, 10% Ongoing Renewal
KiwiSaver
Fee revenue EasyStreet Mortgage is paid to service KiwiSaver funds. This is paid as a percentage of the total funds under management and is changed to the client as part of their management fee.
Booster KiwiSaver Scheme - 0.5% Funds under Management
NZ Funds -
0.4% Funds under Management
Referral Payment of $100
Generate -
Revenue Clawback Policy
If a mortgage is repaid or insurance cover is cancelled within 27 months of your mortgage settlement or implementation of your insurance cover, EasyStreet will have to pay back some of the ‘upfront’ commission received. This has to be repaid to the Lender/Insurer. This is known as ‘commission clawback’. If EasyStreet is charged with a commission clawback, due to early settlement of mortgage or termination of insurance cover by you, then EasyStreet will as you to repay the commission that has become repayable to the Lender/Insurer, to a maximum of $3,000 (including GST), as a cost recovery for the service provided. *this has been calculated on an average of 12 hours of advice, negotiation and administration to complete and submit your loan/insurance application to the provider, at an hourly rate of $217.50 per hour plus GST.
The above cost recovery only applies if EasyStreet is not given the opportunity to arrange the refinance. There will be no fee payable if:
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EasyStreet was given the opportunity, but was unable to get a subsequent finance approval
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An upfront fee was agreed and paid by the Client when the mortgage was originally drawn and no commission was received. This would be the case with most short-term loan contracts.
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In EasyStreet's opinion, the early repayment of the mortgage was driven by an exceptional change of circumstance for the Client
Commission clawbacks are in no way associated with any Broker fee EasyStreet may have charged for arranging non-Bank lending.