Bank announces commission incentive

by Adam Smith27 Aug 2014
A non-major has announced commission increases for its broker network.

Bankwest has announced a new trail commission incentive for deals below 75% LVR. For a three month period, the lender will pay bonus trail while still paying 70bps upfront trail.

The initiative sees the bank instituting year one trail of 5bps for loans up to $350,000, 10 bps for loans up to $500,000 and 15 bps for loans up above $500,000.

“With rates as low as 4.74% p.a. (comparison rate 5.13% p.a.) for a loan amount over $750,000 and less than 80% LVR on our Complete Home Loan Package, Bankwest is growing its share of lower LVR business. Our Broker partners have been talking to me about the value of Year 1 trail, so I'm delighted we are able use this trial to test their appetite. The trial will run for three months and I'm open to continuing this for longer,” Bankwest head of retail brokers Ian Rakhit said.

The bonus trail commission will only be paid for new accounts with all new-to-bank borrowing. Existing accounts and refinancing of existing Bankwest Home Loan facilities will not receive the trail commission bonus, the bank said.