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Major bank offers commission incentive

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Australian Broker | 23 May 2013, 08:00 AM Agree 0
A major bank has launched an incentive program that could see brokers receiving an extra 10bps of upfront commission
  • Dinsdale | 23 May 2013, 08:15 AM Agree 0
    Westpac simply following ME Bank
    Are they losing market share because of their previous arrogance ?
  • Timbo | 23 May 2013, 08:19 AM Agree 0
    So for 4 months they will go from being amongst the worst paying lenders to average.
    Swing and a miss, Westpac.
  • Country Broker | 23 May 2013, 08:20 AM Agree 0
    Positive move Westpac, but with the worst commission rates of the banks anyway, it probably only makes it average & won't make a huge difference.
  • Kevin Melbourne | 23 May 2013, 08:22 AM Agree 0
    why not just drop WBC SVR rate to align closer to competitors. Brokers shouldnt be encouraged to write business for revenue which is what this is saying, should be about the client outcome and what's right for the client.
  • Broker Tony | 23 May 2013, 08:25 AM Agree 0
    This is a great initiative by Westpac! If we pump all our business through them and assuming the aggregators don't take a cut, we will receive commission that is within .05% of the market instead of the current .15% gap. This is truly incentive to put our clients with one of the dearest banks in the land.
  • Brisbane Broker | 23 May 2013, 08:41 AM Agree 0
    What about NCCP & 'Best Interest of the Client'???
  • Mini Broker Pakenham vic | 23 May 2013, 08:55 AM Agree 0
    Good to see Competition at work even if the WBC effort is cosmetic. Thanks ME Bank for starting the push. Come oon ! Lenders who will be next.
  • James | 23 May 2013, 09:48 AM Agree 0
    Excellent smart initative.
    This puts Westpac back on our panel and I am sure everyone would agree that this will see there volumes/marketshare rise signiicantly.
    Prior to this announcement Westpac business was unprofitable and have a right to operate our business at a profit before being anything else.
    Great work Westpac.
  • Andrew Aickin | 23 May 2013, 10:56 AM Agree 0
    James – Who are you? Obviously not a broker! Maybe you work at Westpac, because if you were a broker you would not so blatantly go against NCCP legislation. I grant that the loan may not be unsuitable but why would the 0.1% be your reason to send a client to any bank? Really?!

    And shame on Australian Broker highlight your comments as a good point?
  • A Broker | 23 May 2013, 11:10 AM Agree 0
    Good job Westpac!

    Regardless what sayings there are, I believe WBC's volumn will still rise, that's just hard fact of how increasing incentives works.

    ps. Is there any of you remember that WBC was also one of the first in majors who dropped their Upfront to 0.55% years ago (while market average was 0.77%)?
  • Dr Phods | 23 May 2013, 11:27 AM Agree 0
    @Kevin Melbourne and @Brisbane Broker. Top marks, glad to see you are putting clients first!.
  • Martin from Perth | 23 May 2013, 05:46 PM Agree 0
    Although Westpac's SVR may be a bit higher than most, you can via your BDM get a price discount / match and get nearer to the best rates. We regularly get between 0.8% - 1.0% discount off every application we submit to Westpac. And as for being able to do more for the client after a deal has settled, Westpac is far and away ahead of the rest -- top ups, splits, repayment changes, switches to fixed, etc, all of these can be done by us with a simple phone call. Try this with some of the other lenders' and see what response you get. Yes, we may get paid less but if you do enough deals then the income will look after itself and the client gets what I believe to be the best "bang for your buck" package in the market when you take all of the above into account...just sayin'.
  • QAL | 23 May 2013, 07:08 PM Agree 0
    We place borrowers in the most suitable product for them, not what pays us the most money. Unfortunately, sometimes we don't make as much as we would like to, to cover our costs etc, but what is important is the borrowers' needs. And let's not forget who cut our commissions in the first place. Hmmm? Service levels, quality BDMs and assessors that read our notes are more important than your "promotions" to build YOUR market share.
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