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Commission disparity could cause broker conflict

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Julia Corderoy | 29 Sep 2014, 09:12 AM Agree 0
Lenders are shaking up commission structures in a bid to increase market share, but one industry pundit has raised concerns over the disparity of commission structures
  • MCC | 29 Sep 2014, 10:04 AM Agree 0
    Yes fair call from Michael & under Mtge Choice structure the variance in commission structures carries no 'temptation' to chase the higher comm. to MC brokers. To me it has always come down to where a client fits in relation to 'policy' - Know your credit policy & you know the fit. I think we've come a very long way since NCCP was introduced & even prior to that . Our sub sector of the industry is looking healthier for it. Attention should remain focused on bonus payments to bank lending staff for 'product selling' which flies in the face of needs based lending.
  • Colin Rice | 29 Sep 2014, 10:08 AM Agree 0
    Does Mortgage Choice benifit from this flat fee comm structure or does the broker?. Im fairly certain its NOT their brokers!
  • Clarke Kent | 29 Sep 2014, 10:10 AM Agree 0
    Absolute rubbish!

    At the end of the day the customer comes needs come first and as broker customer safeguarded by NCCP regulation. Commission will always be secondary consideration for bona fide brokers' Rogue brokers will eventually be discovered and weeded out!
  • brokerbill | 29 Sep 2014, 10:18 AM Agree 0
    CBA have been holding back on brokers, we can all get trail from day 1 elsewhere. So this isn't anything special. I would seriously doubt that this would make much difference to any self respecting broker.
  • Ken Crawford | 29 Sep 2014, 10:31 AM Agree 0
    Comissions never bear any reference to where a customer is placed. the lender and loan that fits the customer is where they go. The changes to comission structure are a distraction
  • Broker | 29 Sep 2014, 10:59 AM Agree 0
    Best that MC ask for their commission from CBA to be reduced to the lowest level on offer from any lender then, that'll take care of that issue
  • Bottom Line | 29 Sep 2014, 11:05 AM Agree 0
    Yet again...another self promotion of someone's business model...not sure I've ever met a broker who only gets deals that fit with every bank anyway. Often you are left with only 2-3 options, and client picks the one with the better rate/product. The industry spokespeople are forever trying to create issues where issues don't really exist.
  • John | 29 Sep 2014, 12:10 PM Agree 0
    Is CBA upping the commission so brokers will forgive their very poor service? Or are they just coming back in line????
  • Broker | 29 Sep 2014, 01:10 PM Agree 0
    CBA is bringing first year trail back at 0.15%. QUESTION IS - IS CBA keeping the 2,3,4 and 5 year trail at 0.2% OR are they going to drop the 2,3,4 and 5 year trail to compensate for them paying trail in year 1.

    Has the full story been reported or are brokers going to get a shock when the full commission story is revealed by CBA?
  • Ken Crawford | 29 Sep 2014, 03:09 PM Agree 0
    Why is it that in every change someone can only see a negative as per the cut and pasted comment below. it is hardly likely that the scenario presented below would happen. There are more important issues to be discussing than where or not the changes to comission structures are x, y or z

    "CBA is bringing first year trail back at 0.15%. QUESTION IS - IS CBA keeping the 2,3,4 and 5 year trail at 0.2% OR are they going to drop the 2,3,4 and 5 year trail to compensate for them paying trail in year 1.

    Has the full story been reported or are brokers going to get a shock when the full commission story is revealed by CBA?"
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