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BREAKING: Major bank announces commission changes

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Australian Broker | 30 Jan 2014, 12:00 PM Agree 0
A major bank has today announced commission changes which could see brokers earning a higher upfront
  • Birsbane Broker | 30 Jan 2014, 12:04 PM Agree 0
    So the bank is still paying us less than they did 5 years ago and think we should be happy about it!
  • Rocket Scientist | 30 Jan 2014, 12:05 PM Agree 0
    How about a BDM that answers their phone, a back office that can actually process applications and a branch network that doesn't cross market everything under the sun?
  • Doubting Thomas | 30 Jan 2014, 12:09 PM Agree 0
    I don't use Westpac because of channel conflict. Been caught on this point in the past. Also gives rise to think St George will go the same way. Pay what you like, Westpac. Brokers and their clients can get better service at many other providers.
  • Broker | 30 Jan 2014, 12:09 PM Agree 0
    I agree to Rockets comment. Fustrating if a BDM does not wish to assist you cause you do not write much
  • commission mayhem | 30 Jan 2014, 12:11 PM Agree 0
    So it is obvious that the Banks think commission influences product placement. Fee for service and ban commissions and then the appropriateness of the product for the borrower will take a front seat,
  • James Green | 30 Jan 2014, 12:11 PM Agree 0
    The giant awakens!

    I know this will cause the other top players a lot of concern.

    Great initiative Tony and the Westpac team this will work 100%. I only hope you have the back office, to support the increase in volumes you can certainly expect.
  • commission mayhem | 30 Jan 2014, 12:12 PM Agree 0
    So it is obvious that the Banks think commission influences product placement. Fee for service and ban commissions and then the appropriateness of the product for the borrower will take a front seat,
  • Dan | 30 Jan 2014, 12:12 PM Agree 0 the bank that initially cut our wrists are wanting us back again?? This broker has a memory like an elephant - you're gonna have to do better WPAC!! - how about a phone call from a BDM - actually interested in catching up for a coffee face to face - haven't had one of those in 6 years! WPAC = No way!
  • John Smith | 30 Jan 2014, 12:16 PM Agree 0
    Westpac - to get business -
    * You have to be competitive with your rates
    * For crying out loud, do we need to go through your business bdms, who just don't care, for Family trusts with corporate trustees buying residential property.
    On a high note - never had a problem wiht my BDM.
    On a low note, when Westpac decided to remove my accreditation 1 day before I lodged some loans with them, it left me in a whole for a day or so, before my BDM fixewd it.
    Seriously you cant step on us several times and just expect if you pay us more we will come flooding back. I will place business with you if you are competitive only.
  • Central Coast Broker | 30 Jan 2014, 12:19 PM Agree 0
    Spot on Brisbane Broker, Trail is the concern @.15% plus GST. They now knock out CBA and Homeside with their no trail in the first year. No excuses now that their standard fall back of "cost of Funds" is no longer the issue, the issue is they continue not to reinstate mortgage Brokers commissions to pre GFC levels because of greed and the need for profits. A step in the right direction from what was the LOWEST payer of commissions.
  • Saving Mr Banks | 30 Jan 2014, 12:23 PM Agree 0
    Totally agree with previous comments!
    Those of us that have been in the broking industry since the 90's will know that Westpac never has been and never will be a choice.
    Service is terrible, credit policy is all over the place and BDM's are useless!!!!!!!!!!
    As always we discuss the pros and cons of each lender and not just rates (and definitely not how much they pay) and Westpac is always at the bottom end of the acceptable scale.
  • John Kennedy | 30 Jan 2014, 12:24 PM Agree 0
    Commission has only a small influence on brokers when considering product placement for clients - it is service & clients choice overriding decision making - the true rate factored in with timing of approval assessment turn arounds and back up from an ongoing retail point of view.
  • Perth Broker | 30 Jan 2014, 12:26 PM Agree 0
    I agree with Rocket Scientist. The first thing Westpac should be doing is getting their BDM's off their seat and then get a decent back office which supports the broker network and does not treat them like the enemy!
  • Not Likely | 30 Jan 2014, 12:29 PM Agree 0
    Westpac lead the charge in dropping commissions in the instance, their branches regularly try and steal broker customers, and undercut the % discounts offered with no repercussions, and yet still their upfront and trail lags behind their competitors. No brainer, they will continue to get my ongoing support of the past 3 - 4 years - NIL VOLUME. In fact, when I meet Westpac customers, I actively seek to move them to a more broker friendly bank, so their own actions are costing them big time in reaction. I know as an individual broker that this means little or nothing to Westpac as a whole, but I'm pretty sure I'm only one of a whole bigger set of numbers. They still have plenty of work in this space to convince me otherwise. Its a start, but only a baby step in the right direction.
  • Michael | 30 Jan 2014, 12:36 PM Agree 0
    Lifting commissions is great, however how should we interpret this under NCCP??
  • Hills Broker | 30 Jan 2014, 12:41 PM Agree 0
    Apart from the credible comments made by others regarding the lack of BDM support and poor service, I feel the need to point out that I find it hard to justify increasing applications to a lender who is just not competitive. Maybe I do things a little differently to the brokers who send high volumes to Westpac, but I work for my clients in getting them the best product to suit their needs with the best interest rate. I can't remember the last time Westpac was in the top 3 of my recommendations based on rate/fees. They can offer me all the incentives they like but if they are not competitive, then how do I justify writing business for the sake of a slightly higher commission for me at the cost of a good deal for my clients?
  • You're Kidding me | 30 Jan 2014, 01:04 PM Agree 0
    Like others I've been caught out and I don't use Westpac because of channel conflict. If they are prepared to pay for business that they duded us on they will not see any new business from here.
  • Papery | 30 Jan 2014, 01:17 PM Agree 0
    Cant agree with you more Hills Broker....
    and lets not forget our mates at CBA with their volume hurdles....
    at the end of the day I dont believe for one minute that any Lender (Aggregator or the MFAA/FBAA, for that matter) give a fat rats sniff in respect of the Brokers requirements for product placement.
    I think we all agree that the commissions paid to Brokers by the Lender/s is usually the last thing we calculate.
  • oldBroker | 30 Jan 2014, 01:18 PM Agree 0
    Absolutely hate these aggregator-based commission incentives. So I could settle 100% of my applications with Westpac but won't get the commission bumps if the other brokers in aggregator drag down the conversion rate below 70%. Just wrong. Why does my value to Westpac have anything to do with the other brokers? I just don't understand this bromance between the lenders and the aggregators.
  • Melb broker | 30 Jan 2014, 01:30 PM Agree 0
    They can increase coms all they like. Would not touch them.
  • Glenn Lees | 30 Jan 2014, 01:32 PM Agree 0
    Congratulations to Tony, PB and the Westpac team for advocating this increase. It is a clear vote of confidence in the broker channel and a strong statement of commitment.

  • Terry | 30 Jan 2014, 01:33 PM Agree 0
    I'm With the Brisbane Broker. we are still behind what we received 5 years ago. I bet the westpac goons have had pay increases in that time period.
    Get real.
  • Terry | 30 Jan 2014, 01:35 PM Agree 0
    Do Westpac have BDM's. When did this happen. "Stunned silence"
  • James | 30 Jan 2014, 02:43 PM Agree 0
    Surely better rates, a better attitude and better service levels would be more preferable. More commission doesn't bring more business if everything else is rubbish.
  • Steve Pacey | 30 Jan 2014, 02:59 PM Agree 0
    A move in the right direction. CBA and Homeside have to start paying trailing commission in year one as well. We all copped a 40% reduction in commissions in 2008 (GFC)..clearly the "Cost of Funds Issue" is behind the Banks and as such commissions are slowly reverting back to where they were. From where I stand, the Trail Commissions all need to be improved, surely we all remember when .250 to .300 were standard from day one. We all need to pay the gas bill every month, hard to do with the trails at their current level.
  • Stewart | 30 Jan 2014, 03:44 PM Agree 0
    This is really Not worth a "Breaking News" email.

    Nothing in this annoucement is breaking news at all.

    It is just another piece of crap news from a lender "Trying" to impress a market place (brokers) with a supposed increase in commissions.

    But when you read the real story you find it is about volumes & conversions- the extra 10bps has been there for quite a while now (my aggregator has been receiving it for 6 months now and I remember some years ago it was in place then too) and the extra 0.05bps for a conversion ratio is a waste of time from Westpac.

    Basically they know that most aggregators won't reach it becasue of the number of applications that don't convert anyway.

    Westpac - Stop wasting our time & just increase commissions to be in line with everybody else.

    Australian Broker:- do your homework first before making annoucements like this.

    The story would've been proper news if your homework on the facts and implications was done first, then you could report the story properly.
  • well... | 30 Jan 2014, 04:13 PM Agree 0
    Nice move - but it only brings them up to what the others are offering.
    I read the article to see if trail had moved.
    A return to 0.25% would be a major announcement, and a game changer.
    Moving your commission in line with everyone else isn't.
    Plus commissions are still set at levels lower than 6 years ago; and judging from the valuations I've been getting, the old chestnut about loan sizes going up doesn't fly anymore.
  • Dave Robinson | 30 Jan 2014, 04:14 PM Agree 0
    What the?
    "Congratulations to Tony, PB and the Westpac team for advocating this increase. It is a clear vote of confidence in the broker channel and a strong statement of commitment."

    How is it clear let alone strong. It's wishy washy at best. It's so complicated that the email I received from them had to be followed up with a correction as they can't even follow their own changes. Clear and strong it is not. Your support for them is. If I was an aggregator like you I would probably feel the same way but as a broker we are miles apart and as a "member" of Connective I have to wonder if you really represent your members.
  • Broker | 30 Jan 2014, 05:21 PM Agree 0
    I was once betrayed by my ex, I moved on and found a new one!....and we all know that you never go back!
  • Positive Broker | 31 Jan 2014, 08:21 AM Agree 0
    Westpac are not on my panel since they cancelled my accreditation due to lack of volume? Wonder why they weren't getting any volume? Any broker worth his salt is not influenced at all be a few points of commission. Competitive products and good service are the only thing that will get Westpac back on my panel.
  • Bush broker | 31 Jan 2014, 09:10 AM Agree 0
    Westpac are stinkers, woeful service, poor systems and an inept credit team. Even if they were paying 1% I still would not use them.
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