Commissions

Generally, I won't charge you any fees for the financial advice I provide to you. This is possible because, on settlement of a loan, or KiwiSaver funds under management, most mainstream banks and providers and some non-bank lenders will pay an Adviser an Initial (upfront) commission when the loan is drawdown. This is normally a percentage of the loan facility ranging from 0.40% -0.85% depending on the product provider.

Ongoing (trail) commission - a percentage of the value of your outstanding loan amount, usually calculated at the end of each month of which you hold the loan. Only some product providers pay this ongoing commission, normally at a rate of 0.10% - 0.20%

Any exceptions to this general position are explained below.

Fees

In some circumstances, I will need to charge you a fee for my services. If this is the case, I will discuss this with you upfront & we will agree on the fee and confirm in writing before any applications are undertaken.

This could be in the following circumstances, but not limited to:

• Arranging finance with a Lender on your behalf, who does not pay any commissions & I need to cover my time, service, and expertise. For example, this could apply to situations such as commercial/business loans, small top-ups, caveat/personal loans, 2nd mortgages, bridging finance, restructures, and adverse credit history

• Completing a restructure of your current lending, where no commission is paid by the Lender where I provide consultation services for you where there is no new lending, but time is taken, and formal advice is provided

• Top-ups on existing home loans where there is less than $100,000 of new lending

• A full-face to face review of your financial position & mortgage planning advice, goals, and preparation for a home loan application in 6 or more months

CLAWBACK POLICY

MORTGAGE/HOME LENDING

If a mortgage is repaid within 36 months of your mortgage settlement, DebtFreeDiva will have to repay some of the 'upfront’ commission received. This has to be repaid to the Lender. This is known as ‘commission clawback'.

If DebtFreeDiva is charged with a commission clawback, due to early repayment of lending or the discharge of a mortgage arranged for you, then DebtFreeDiva will ask you to repay to DebtFreeDiva the commission that has become repayable to the lender, to a maximum of $3750* as cost recovery for the service provided.

This is commonly known as the clawback fee. The clawback fee I charge you will not exceed the amount of commission I have to repay to the lender.

*This has been calculated on an average of 15 hours of advice, negotiation, and administration to complete and submit your loan application to the provider, at our hourly rate of $250ph.

The above cost recovery only applies if DebtFreeDiva is not given the opportunity to arrange the refinance. There will be no fee payable if:

• DebtFreeDiva was given the opportunity but was unable to get a subsequent finance approval

• An upfront fee was agreed upon and paid by the Client when the lending was originally drawn and no commission was received. This would be the case with most short-term loan contracts.

• In DebtFreeDiva’s opinion, the early repayment of the lending was driven by an exceptional change of circumstance for the Client

• Commission clawbacks are in no way associated with any Broker fee DebtFreeDiva may have charged for arranging non-Bank lending.

You will be invoiced for the clawback fee and will be given 7 days to make payment.

OTHER FEES

Please advise us at the start of the process if you are engaging other lenders or brokers directly.

In this instance I may charge an admin fee for my time should we obtain an approval/or spend considerable time on a proposal and you source the finance elsewhere via another broker or lender directly within 7 months of this engagement.

This includes non-disclosure of critical information that hinders our ability to obtain a solution causing additional work. Our admin fee would be capped at $2,500 based on 10 hours of average file time and $250 per hour. You will be invoiced for the time spent on your file and will be given 30 days to make payment.

ADVISER FEES WHERE LENDER COMMISSION IS NOT PAYABLE

We may charge a fee (advised and agreed upfront) for complex work that does not earn a commission from the lender to sufficiently cover our time and expertise. That may include situations such as commercial/business loans, small top-ups, caveat/personal loans, 2nd mortgages, bridging finance, restructures, mortgage planning advice, and lending where there is adverse credit history. If anything is unclear, please discuss with me in the first instance.

You will be invoiced, and payment will be due upon settlement of the new loan

OTHER COSTS (SUCH AS LEGAL FEES, VALUATION FEES)

Where other costs such as legal, valuation, and accountant fees are incurred in the process of providing our advice and services to you, you will be liable for these costs.