Homeloan refinance ended up costing

Read contracts before you sign. If you repay or refinance your loan early, you may be charged a fee

Homeloan refinance ended up costing

Matiu* arranged a home loan in April 2016 through a mortgage broker (financial adviser), Stephanie*. Eighteen months later, Matiu re-financed his house and paid off the loan. As a result of the loan being repaid with two years, the bank asked Stephanie* to repay her commission. Stephanie then charged Matiu a fee of $1,351.25, which consisted of a $500 minimum fee, plus 4.5 hours at a rate of $150 per hour, plus GST. Matiu said he wasn’t aware Stephanie would charge him a fee for paying off the loan early. However, in the contract Matiu had signed, he had agreed to pay a fee if he refinanced his loan within 2 years. The fee was to be based on a $500 minimum fee, plus time spent at an hourly rate of $150, plus GST. The financial adviser was entitled to charge the fee.

Complaint not upheld.

*Names have been changed.

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