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.
'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
"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 opportunity...to get a competitive advantage," he said.