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New ASIC handbook helps consumers

A new handbook developed by ASIC can help to check out the references of advisers.

Per the Herald Sun 15/11/2007 - Picking out the rotters

"Investment watchdog the Australian Securities and Investments Commission recently launched the new book to help people check the references of financial advisers."

"The handbook, developed jointly by ASIC in consultation with a panel of industry representatives and with assistance from Standards Australia, is designed to encourage people in the finance industry to get and, when requested, provide reference-checking information to help identify dishonest, incompetent or unethical financial advisers."

This is a great step forward to help consumers know who they are dealing with. There are some great advisers out there, and its reassuring to be able to check who you are dealing with.

For the full story see http://www.news.com.au/business/money/story/0,25479,22768258-14327,00.html

www.rebatehomeloans.com.au

Upfront and trail commissions are being paid on your home loans also.

Below is an extract from the website www.rebatehomeloans.com.au

Your mortgage is highly sought after by lenders...so highly that generous commissions are paid by the banks to mortgage origination (mortgage broking) firms who bring business to them.
Almost all lenders in Australia pay two types of broker commissions on a mortgage. These are commonly known in the industry as ‘up front’ and ‘trail’ commissions.

The ‘up front’ commission is paid to the broker soon after the loan has settled and is based on a percentage of the total amount borrowed. Most lenders pay between 0.6% and 0.7% in up front commission.
e.g. A $250,000 loan amount will usually generate up front commission of at least $1,500.

The ‘trail’ commission is most commonly paid monthly after settlement of the loan and is based on a percentage of the outstanding balance of the loan during the previous month. Most lenders pay between 0.2% and 0.25% in trail commission per annum. 
e.g. A $250,000 loan amount will usually generate trail commission of approx $500 in the first year (approx $41 per month). Trail commission is generally paid for the life of the loan and the amount paid each month will decrease as the client gradually (in normal circumstances) reduces the balance of the loan by repaying the principal.