Mortgage manager increases commission

by Caroline Dann25 Sep 2012

Australian First Mortgage (AFM) has announced an increase in upfront broker commissions from 0.65% to 0.70%, effective 1st October.

The increase applies to its Complete Option product, which is the highest-selling in its suite.
AFM's national head of sales Clint Hawthorne told Australian Broker Online now was the perfect time for commission increases.
"We certainly don’t want to be left behind when it comes to competitive pricing, not only from an end-rate point of view but also from a commission point of view," he said.
He said increasing borrower dissatisfaction with the majors could be used as an incentive for alternative lenders to up their game.
"There’s a lot of negative sentiment, particularly in the area around the major banks jacking up rates outside of the RBA movement.
"For organisations like us, it’s a great opportunity to capitalise on that negative sentiment, and get out there and try and get in front of as many brokers as possible, and promote our offerings."
He admitted commission increases could be "a trend that starts to develop."
"The banks continue to cite pressures when it comes to funding costs, so it may be a good get a competitive advantage," he said.


  • by ozboy 25/09/2012 8:55:04 AM

    Great news, would seem the CEO of MC may have been off the money in relation to commission increases. Now brokers if you want more of this then support AFM. If we can do this TOGETHER then you may find that we, as a group, could CLAWBACK some of the lost ground since 2007/208. The ball is firmly in our court....time to pick it up and run! Hey it is footy finals time.

  • by Stephen Dinte 25/09/2012 9:59:55 AM

    I could not agree more with ozboy. Brokers have the potential to develop much stronger ties with the non-banks as we are their distribution arm. If brokers nationally get behind the non-banks and include their product offerings during discussions with clients, they may well find that their clients are not that inclined towards the majors either. So much for the doomsayers who predicted a reduction in commissions if brokers introduced "fee for advice".

  • by Qld Broker 25/09/2012 10:03:24 AM

    Mortgage Managers need to get competetive with their fixed rate offerings. I like many others would love to support them, but I'm not going down that road with half a suite of products. I want to make sure my clients ultimately get what they come to see me for. Good service and a good product offering, be it fixed or variable.