How MA Money’s Risk Fee Reducer helps reduce upfront costs
At MA Money, we’re all about giving brokers and their clients the flexibility to structure loans in a way that works best for them. One of the unique features we offer is the Risk Fee Reducer, a game-changing option that allows borrowers to reduce or eliminate their upfront risk fee in exchange for a higher ongoing interest rate.
This feature is designed to help clients who want to minimise upfront costs while still securing a competitive loan. Let’s break it down.
How It Works
For Residential Loans up to 80% LVR, borrowers can choose to reduce the Risk Fee (up to 1.00%) by applying 50% of the Risk Fee to the base interest rate instead.
Here’s what that looks like in practice:
☑ Risk Fee of 0.50% → Rate loading of 0.25%
☑ Risk Fee of 1.00% → Rate loading of 0.50%
This option can provide relief to clients who may not want to pay the full risk fee upfront, making it easier to manage cash flow at settlement.
Who Can Benefit?
Brokers with clients who:
- Want to reduce upfront costs to free up cash flow for other expenses
- Are comfortable with a slightly higher interest rate in exchange for lower initial fees
- Are looking for flexible loan structuring options that aren’t offered by traditional lenders
Important Considerations
While the Risk Fee Reducer is a great way to minimise upfront fees, it’s important to note that it does increase the total interest paid over the life of the loan. This option excludes:
- Loans over $2 million
- Loans with LVR over 80%
- Risk Fees over 1.00%
- Vacant Land, Expat and Non-Resident Loans
If you have a client who could benefit from reducing their risk fee, talk to your MA Money BDM today!
Want to learn more? Check out our Rate and Product Guides or speak to your BDM to see how we can help you place more deals.
