Commission and clawback disclosures for 2020

Below is a table that shows our clawbacks and commissions agreements with the banks we deal with. All lenders pay the same sum, some claw it back differently. A clawback is where at some point in the future after a loan draws down that a bank or lender takes back income that was payable as commission in the past.

For example, if we help a client to borrow €150,000 we would get €1,500 in income from the bank, but with most of them if you were to refinance elsewhere for a better deal in year one the original bank would take back (claw back) the full €1,500. That’s why our terms of business explains that if we get a clawback that we in turn seek payment of that from the client.

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Commercial tax rates pose threat

The Irish Business and Employers Confederation is the largest lobbying group that is set out to represent the rights of irish businesses at a national and international level. This group is focused on supporting all different types of businesses, from large to small and across every aspect of the economy. 

Recently, they published a press release that was aimed to protect local businesses incomes by calling for a tax reform on commercial rates that would centralize collection in a similar way to that of current, well utilized tax systems. 

Ibec Senior Public Sector and Regulatory Executive Aidan Sweeney, said: “Local authorities have a significant impact on business conditions and cost competitiveness. This year businesses will pay €1.55 billion in commercial rates, up 14% since 2010. Approximately €1 out of every €3 spent by a local authority comes directly from local businesses. Local authorities are relying on business to balance their books.”

Local businesses were not consulted during the creation, voting or soon to be implementation of this new tax standard. This is most frustrating, given that they will be the …

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TodayFM Last Word features Irish Mortgage Brokers and Joan Burton to discuss bank taxation

We took part in a conversation with Matt Cooper on The Last Word about bank taxation with Joan Burton from the Labour Party. We tried to make the point that short term thinking about bank taxation is a mistake, that we are better off getting the maximum amount of money back to the state rather than losing bank value in order to score a short term political win.

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Housing Induced Stress on Students

Students all around the world have been struggling with universities taking advantage of their wallets for quite some time.

It is only recently, the students of DCU have spoken up for themselves in the hopes to be heard and make a difference for all future student planning to attend DCU.

Their argument, one that is on the minds of many…what is up with these price hikes?

Every year student residents have been noting dramatic increases in the cost of accommodations for the academic year.

With the most recent price hike bringing the total cost to 10,000 euro. That, being, nearly triple the cost of attendance!

One of the most prominent arguments to this petition is the stresses that are already felt by the students in their regular responsibilities within the classroom.

Some price jumps are reported to be up from 29% the regular prices. A hike that is difficult to cope with and may defer some students from choosing to attend and further their education at all.

In many cases, the costs are outweighing the …

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Independent.ie mention Irish Mortgage Brokers

We were mentioned in the Independent today in a story relating to the Central Bank, it hinged upon the fact that they had a ‘whistleblower’ line for people wanting to report financial wrongdoing and it wasn’t operating correctly which means they couldn’t take a call.

The story quoted us as follows: Compliance officer with Irish Mortgage Brokers Karl Deeter said it was not good enough that the whistleblower phone line was not being answered and emails not getting a response.

“Imagine if you called 999 to report a crime and no one answered. What would you think of our police service?” he said. A Central Bank spokesman claimed the problem had been rectified after the situation was raised with it by the Irish Independent.

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Understanding Personal Contract Plan or ‘PCP’

A lot of people come to us for general financial advice and something we are asked about more regularly are PCP contracts. This is where you make a down-payment on a car and then make monthly payments.

The basic workings are that you are paying for the depreciation and not ‘the car’ as some people think. You give an estimate of your annual mileage and in return you get a ‘MGFV’ or ‘minimum guaranteed future value’. If you go over the miles it negatively impacts the value.

This is then the price you have to pay to own the car. You aren’t covered by the Consumer Credit Agreement legislation because you are not ‘buying’ anything when you do this.

What is interesting is that people don’t usually think about how this works in the future, when the time comes you’ll notice that you usually can’t sell the car for the ‘value’ you are told it has and if you did buy it and go to sell it to a garage or a private seller you won’t normally get anywhere near …

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2016 Mortgage lending rules submission by Irish Mortgage Brokers

We sent our research and thoughts on the lending rules to the Central Bank as part of their industry consultation process regarding the existing mortgage lending rules.

While we are critical of them in particular for first time buyers, we haven’t had an issue on other aspects of it (such as controls for investors). The submission argues with supporting evidence for 90% loans for first time buyers to be available generally but to keep other controls generally in place, or to do nothing at all and give the adjustments more time to bed in.

Submission is here: 2016 Central Bank macroprudential rules submission Irish Mortgage Brokers

The findings of a survey carried out by Behavior and Attitudes of clients of Irish Mortgage Brokers, DNG and Hooke & MacDonald which was mentioned in the press is also available here: 2016 MacroPrudential review – survey findings

 

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Newstalk: Talking Point on housing, Saturday 9th April 2016

This week on Talking Point the host Sarah Carey did a great job of examining housing issues with the panel of guests which in studio included Lorcan Sirr of DIT, Dermot Lacey a Labour Party Councillor and Karl Deeter of Irish Mortgage Brokers.

Many relevant points were made about tenure, about supply constraints and solutions as well as discussions about things that don’t often make the press – such as permanent tenures and the like. It is well worth listening back on given the breadth and expert insight of the show.

 

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Sunday Independent: Irish Mortgage Brokers mentioned in housing article

We were happy to see that our concern about social engineering was mentioned in an article in the Sunday Independent by Brendan O’Connor, the quote is below.

Or does the Central Bank think it’s desirable? And why has the Central Bank taken it upon itself to decide that Irish people should move to renting property rather than buying their own house? Mortgage broker Karl Deeter has suggested the Central Bank is indulging in social engineering. What other shifts in how we live would the Central Bank like to introduce you wonder. Perhaps a one-child policy?

The issue of social engineering was first raised by us in the consultation process when it began in 2014, specifically we said this was a concern in the following two quotes taken from our submission:

This policy will ensure that many people fall prey to a policy that in protecting banks hurts their future wealth. We are, and will remain, strongly opposed to measures that have societal engineering outcomes such as this.

And later we also said that

For people who don’t have rich parents …

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A picture speaks 256,000 words

The Surveyors Journal did an excellent info-graphic on how much it costs to build a house (with no land cost factored in)

It’s fairly clear that costs are not as simple as ‘cheaper land’. That is only one part of the equation, the other parts are things like local authority costs, Part V, VAT, expected profits, all of which are not directly linked to prime costs of the materials and labour that creates the construction part of the home.

Worth looking at twice before wondering why housing is so damn expensive.

 

 

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