Bank changes broker commission

by Rebecca Pike26 Nov 2018

A bank has today announced changes to its upfront commissions to akcnowledge the work of the Combined Industry Forum (CIF).

MyState Bank, whose broker originations account for more than 50% of its loan book, has said it is 100% committed to the broker industry. 

Effective 1 January 2019, the calculations for broker commissions on both new home loans and loan increases will be based on the drawn down balance on the tenth calendar day of the month, instead of the initial total approved loan amount. 

These changes are in line with reforms agreed to by the CIF and the recommendations of the ASIC Broker Remuneration Review and Sedgwick Report.

MyState Bank group executive broker distribution, Huw Bough, said, "This is the right thing for brokers, the right thing for aggregators, and the right thing for the customer.

“Brokers are critical to the health of the Australian mortgage market, with 55% of Australians now choosing to access lenders and their products via mortgage brokers. They provide an invaluable service and guidance to people as they navigate the home loan process.

“At MyState Bank, we will continue to work in partnership with our aggregators, brokers, and regulators to ensure we are at the forefront of initiatives that seek to reinforce positive customer outcomes and strengthen the position of the broker channel well into the future."