ING announces new upfront commission structure

by Julia Corderoy24 Nov 2015
ING Direct has announced a new upfront commission model that will come into effect from 1 January 2016.

The simplified commission model will be structured around individual accounts as opposed to the current model’s focus on aggregator volumes and conversion rates, according to the non-major, ensuring transparency for brokers and alignment with the bank’s primary bank strategy.

“We reward our customers for their loyalty and for supporting our business strategy to be the main bank for Australians. It made sense to do the same for brokers, resulting in our new, simplified commission model which will reward the type of business that best supports our primary bank strategy – lower LVR, Orange Advantage home loans,” Mark Woolnough, head of third party distribution at ING Direct said.

The minimum upfront commission will remain unchanged at 50bps (+GST) with the maximum increasing to 80bps (+GST) until 30 June 2016.

ING’s new commission model was finalised following consultation sessions with aggregators and will apply on new residential loans with new to ING security property settled from 1 January 2016. 
 

COMMENTS

  • by Brado 24/11/2015 9:20:04 AM

    This is dead set ridiculous... Fair enough put up your rates on loans over 80% LVR if you don't want them, but cutting commission as well... No way.

    ING I will not support you and will not be sending loans your way, no matter what the LVR is. This kind of commission structure is definitely a 'conflict of interest' measure...

  • by NQ Broker 24/11/2015 9:29:40 AM

    Whilst the commission changes are positive for brokers, we need to be mindful of how these changes will be perceived by the ever present watchdogs just looking for an excuse to sink the boot in to Brokers.

    It also beggars belief that in this day and age a lender like ING can just pull all construction lending. A major step backwards in my books. What happens to existing clients that want to build other than being forced to pack up and move.

  • by Broker 24/11/2015 10:04:50 AM

    So what exactly is the new model?