Broker clawback
Advice needed
Settled on my first home about 8 months ago with LVR at about 85%. With a small rise in my property value and a few extra contributions, my LVR is now just about $2k away from being under 80%. I’m in a position to pay the $2k to get it under.
I’m happy with my lender and want to internally refinance to get a .25 reduction in rate. Broker has been working on this. Today I learned that this will come with nearly $800 in fees and will result in a 100% clawback for my broker and no more trailing commission. Despite this, my broker has not discouraged me from refinancing at all. They seem happy to proceed if it’s in my best interest.
Why would this happen if it’s with the SAME lender? My broker did great work for me and I don’t want to hurt that relationship. This seems so fucked.