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Non-major announces commission changes

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Australian Broker | 17 Feb 2015, 08:29 AM Agree 0
A non-major bank has today announced changes to its commission structure it says will reward brokers for customer retention
  • Greg | 17 Feb 2015, 09:01 AM Agree 0
    Good but how about mixing with your brokers and getting your bdms out there???
    I haven't seen a bdm in 2 yrs!!
  • Deena Janes | 17 Feb 2015, 09:06 AM Agree 0
    Good on you Suncorp! Good to see rewards coming back to the brokers.
  • Tony Thompson | 17 Feb 2015, 09:22 AM Agree 0
    Hi Greg, I use Suncorp a lot due to their overall positioning. Product, Rate, Fees and Service. If you haven't heard from your Relationship Manager for a while, it would be well worthwhile jumping on the phone, find out who the RM is, and getting them out to see you. In most cases, their attitude to Brokers and Customers is very refreshing.
  • Dave Robinson | 17 Feb 2015, 09:33 AM Agree 0
    Ah but no mention of the decrease in upfronts. Take with one hand to give with another. Guess what with an average loan life of 4 years you will loose money after the 27th of this month.

    Do your sums after all that's the business we are in.
  • Nick | 17 Feb 2015, 09:59 AM Agree 0
    Upfronts are under pressure across the industry, fee for service is becoming more common. Clawback can really hurt cashflow so is forcing a better service propositions to maintain clients. Anything that boosts broker trail income for loyal customers is a good thing.
  • QLD Broker | 17 Feb 2015, 11:38 AM Agree 0
    Disappointing that they have reduced trail in the first 3 years from 0.20% down to 0.15%. So now the broker only benefits after 6+ years. The maths on that doesn't excite me much, nor is it really a commission increase if you ask me.
  • Broker | 17 Feb 2015, 05:56 PM Agree 0
    100% disagree with you Nick, the margin between the RBA rates and rates on offer has never been larger, and this is clearly translating into even more record profits for banks in pretty soft economic times.

    How on earth could up-fronts possibly be under pressure - it defies all logic, unless of course you are referring to increased greed on the banks part and the desire to squeeze brokers at every opportunity
  • Nick | 18 Feb 2015, 08:21 AM Agree 0
    @Broker - I am not referring to "greed" of banks. I am referring to the change in regulation that resulted in clawback being introduced by funders for those initial few years. Clawback is being countered with fee for service. I am not debating profit chasing banks, I am pointing out a change in revenue options for brokers. Disagree with that?
  • annon | 18 Feb 2015, 09:18 AM Agree 0
    no cut to upfront from what I read on aggregators news site
  • Broker | 18 Feb 2015, 10:36 AM Agree 0
    Nick- I agree with you, however I would think that most brokers just include a clawback clause in their Finance Brokers Contract, as apposed to charging a fee for service upfront.
  • Dave Robinson | 18 Feb 2015, 10:47 AM Agree 0
    annon, from 0.88 to 0.65 your aggregator news site might take a while to update or if you are with Connective then it might never get updated.
  • Tony Thompson | 18 Feb 2015, 11:14 AM Agree 0
    Dave, when was the Commission @ .88% except for a special deal they put on late last year.
  • Macarthur Broker | 18 Feb 2015, 09:10 PM Agree 0
    Be fair Dave, you obviously have an axe to grind with Connective. The .88% was clearly a short time special and anybody who thought otherwise is naive if not foolish. As for Connective I think you need to check your own facts, after all it is your business.
  • Dave Robinson | 19 Feb 2015, 10:26 AM Agree 0
    Mr Thompson and Macarthur Broker the Connective software, NCCP doc's etc all say 0.88% if it's different for you/your aggregator I can't comment but the 0.88% for Connective brokers is FACT according to Connective. No axe to grind just telling it as it is and being fair at all times.
    ***Today Connective have updated comm's to 0.715% for upfront even though email from Suncorp states 0.65%. Macarthur Broker so which facts do I check and how do I know which of those figures is correct? Your input would assist me with my naive and foolish ways! :-)
  • Marty | 20 Feb 2015, 08:51 AM Agree 0
    Gst you ninny. 0.65 is 0.71 with gst. Everyone who has been around for more than a few minutes knows the base rate is 0.65 (0.8 + gst was a special offer). Jeez
  • Macarthur Broker | 20 Feb 2015, 09:10 AM Agree 0
    Sorry if I was a bit rude Dave. I am a Connective Broker and my point was that even though I find Mercury fairly accurate I always make my own enquiries coz at the end of the day I am responsible for my own business.

    Having said that I do think Connective need to lift their game a bit if they want to stay ahead of the pack.
  • Dave Robinson | 20 Feb 2015, 11:31 AM Agree 0
    Hi Marty, thanks for clearing that up, your patience and eloquent way with the English language is greatly appreciated.
  • marty | 20 Feb 2015, 12:20 PM Agree 0
    Hi Dave happy to help. Connective always quote with GST while most lender / other quote without it. Trick for neewbs. Also remember Connective won't update the commission rates until they are effective but if you write a loan that will settle in say 6-8 weeks time you are obliged to put what comm rate you expect to get paid on not todays rate.
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