"Thank you Jesus!"
That was the response from Australian Mortgage Brokers' Paul Gollan on Australian BrokerNews' leading broker forum, on hearing that NAB Broker had rejigged its segementation offering.
"Banks spend a lot of time asking brokers 'what do we need to do to get more business'. Clearly NAB Broker has identified one of the answers," Gollan's online comment read.
Here's the full text of his online commment:
Paul Gollan on 28 Nov 2011 02:17 PM Thank you Jesus! Nice work NAB Broker. Banks spend a lot of time asking brokers "what do we need to do to get more business". Clearly NAB Broker has identified one of the answers. 65 basis points upfront plus their stepped trail structure is finally starting getting broker commission rates back to where they should be. Brokers and their families were smashed by banks during the GFC with banks citing margin squeeze. Notice net margin on mortgages has got very little airplay this year, while pricing committees at banks have been throwing around discounts like drunken sailors. RESPECT NAB!
Other brokers (quoted below) were equally pleased with the move, one of the most significant increases to commissions since the onset of the GFC
Prisco Minichiello on 28 Nov 2011 02:32 PM Well done NAB this is a welcome move. I think it will win you significant market share.
Scott Hawkanson on 28 Nov 2011 03:48 PM Those calling for trail from day one, have you done the numbers? Average trail after 5 years is .25%, from that point you get paid .35% Why don't we display some positivity about moves like this?
Meanwhile, online posters JBJB, Melbourne Broker and Tony all weighed in to suggest NAB's next best move would be to consider the future viability of the Homeside brand.
JBJB on 28 Nov 2011 05:03 PM
Next move must be to ditch the HomeSide brand and call everyone a valued NAB customer, with normal trail on broker introduced deals.
Melbourne Broker on 29 Nov 2011 09:49 AM
If NAB is serious about winning sizeable marketshare, then do what CBA did and drop the redundant brand (Colonial in thier case) and see the real distribution power of brokers and reward us appropriately for our efforts.
Tony on 29 Nov 2011 11:41 AM
Putting all brokers on an even level is great. When is NAB going to actually combine NAB & Homeside?
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