Following the introduction of a six-month repayment holiday for home loan holders to compensate for the financial strain introduced by the COVID-19 pandemic, many lenders have come out to clarify their stance on broker trail commission over that period of time.
Pepper Money and Westpac were among the institutions which last week committed to honouring all broker trail commission payments for customers who opt to defer payments.
Teachers Mutual Bank Limited has also announced it will continue to provide trail payments for brokers up to 30 June, at which point it will assess whether that provision needs to be extended.
“As a mutual bank and a community, it is important to us that we come together with our broker partners and our members to support each other, and look forward for better times ahead,” said Mark Middleton, head of third party distribution.
“We are so grateful for the support that brokers continually show our bank and we are pleased to be able to support them in a challenging time. Our aim is to keep our lines of communication open and continue to work together with our broker network to serve our members.”
MyState Bank has also committed to honouring broker trail commission.
“While we have measures in place to support customers during this unprecedented time, we have taken the pro-active stance that we continue to support our brokers,” said Tony MacRae, MyState Bank GM of banking.
“This decision provides certainty and support for brokers to ensure their income is not impacted in what is going to be a challenging period for the entire nation.”
Mortgage broker Aussie will also continue to pay trail to their brokers for all three of its active home loan products: Aussie Activate, Aussie Elevate, and Aussie Select.
“This decision is an indication of our commitment to brokers, who alongside their customers are facing uncertain times amid the COVID-19 crisis,” said Aussie CEO James Symond.
“I applaud the growing number of lenders also providing this support and it is fantastic to see an industry united in support of brokers, who represent thousands of small businesses around the country providing an invaluable service to Australians at this time.”
“The important work brokers provide is increasingly in high demand as customers are rightly weighing up their financial options during the current COVID-19 economic environment, with many enquiring about hardship support, variations to existing loans, or refinancing.