A non-bank lender has revealed significant changes to its broker commission structure, while hinting at upcoming rate cuts.
Australian First Mortgage
yesterday told Australian Broker
it would increase trail commission for brokers to 0.25%.
Today the lender announced the increase would apply to its Alliance program, which would continue to pay an upfront commission of 0.5%.
The Complete Option will still have an upfront commission of 0.70% and trail of 0.15%, allowing brokers to choose their remuneration based on their business needs, said managing director David White.
“Feedback from our brokers was to provide a product with varying commission, without the rate for the client changing,” he said.
“These two options allow a broker to choose a higher upfront and lower trail or lower upfront and a higher trail, with a variable rate starting as low as 4.95%.”
All commissions are exclusive of GST and trail is paid from settlement.
Mr White also advised that announcements on further rate discounts to these products would be announced soon.
“We are always working on improving our program to provide our brokers with the most flexible product range at great rates coupled with our excellent service,” he said.
The program changes are effective immediately.