Comment of the Week goes to Oldbroker

by AB16 Aug 2013

This week’s winning comment comes from ‘Oldbroker’ and relates to Wednesday’s interview with Aussie Home Loans CEO, Ian Corfield.

In the article, Corfield says lower funding costs will likely translate into increased broker commissions – but warns brokers not to get too excited just yet.

“Funding costs have fallen,” said Corfield, “although it will take time for this to fully flow through into banks’ cost of funds as funding built-up in recent years rolls off. I'd love trail commissions to go up, but that would need to be on a sustainable basis.”

Oldbroker responded with the following, rather pragmatic, comment:

“Commissions will rise only if the percentage of broker-initiated deals increases to (I think) around the 75% range as opposed to the 40% currently. The lenders don't owe us a living and they reduced the commissions because they can. It's a fairy-tale to think otherwise. CBA eliminated first year trail and their market share remained stable. Simple supply and demand.”

Thanks to everyone who contributed comments over the last seven days and keep an eye out next Friday to see if you're the author of Australian Broker's next top 'Comment of the Week'!


  • by mac 2/08/2013 8:47:48 AM

    Problem is with IR laws as they stand you really can not pay employees commission only if it ends up being less than the relevant award which is about $40K pa I think. Also the contractor option is really not viable either be careful you don't get deemed to be in a sham contracting arrangement. You may have to gross up what you have paid them pay the difference to the ATO as their PAYE tax and then pay super on top of that too. This has happened in our industry.

  • by Philthyo 2/08/2013 10:14:53 AM

    It is with great pride & humility that I accept this lofty title. I would like to thank my Mum & Dad.............................................