Direct has announced a new upfront commission model that will come into effect from 1 January 2016.
The simplified commission model will be structured around individual accounts as opposed to the current model’s focus on aggregator volumes and conversion rates, according to the non-major, ensuring transparency for brokers and alignment with the bank’s primary bank strategy.
“We reward our customers for their loyalty and for supporting our business strategy to be the main bank for Australians. It made sense to do the same for brokers, resulting in our new, simplified commission model which will reward the type of business that best supports our primary bank strategy – lower LVR, Orange Advantage home loans,” Mark Woolnough
, head of third party distribution at ING Direct
The minimum upfront commission will remain unchanged at 50bps (+GST) with the maximum increasing to 80bps (+GST) until 30 June 2016.
ING’s new commission model was finalised following consultation sessions with aggregators and will apply on new residential loans with new to ING security property settled from 1 January 2016.