A NEW fundraising vehicle is giving charities access to home loan commissions totalling $100 million a month.
To make a different offer to its customers, mortgage broker Vault One has created a vehicle whereby anyone taking out a home loan can now direct 30 per cent of the up-front and trail commissions paid to mortgage brokers by banks and non-bank lenders to a charity of their choice.
The company writes more than 50,000 loans a month across Australia and estimates this will give charities and community groups the opportunity to access an industry generating commissions in excess of $100 million a month.
Vault One director Phil Wade said the company had been set up purely to help generate long-term passive income for charities.
“In particular, the ability to create trail income will enable charities and research institutions to plan and budget for the future with certainty because trail income is paid on a monthly basis,” he said.
“All that is required is that anyone who is taking out a home loan, or for that matter any finance, contacts Vault One and nominates their charity or favourite cause and the funds will be directed into that nominated charity’s bank account.”
Ronald McDonald House Ball Committee chairman Terry Creasey said the program would help save charities a lot of time and resources that normally have to be devoted to fundraising.
“Funds are required to implement many new programs, one of which is the Ronald McDonald Learning program – a catch up program for children whose education has been disrupted by serious illness,” he said.
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