A non-bank lender has announced changes to its commission structure.
Australian Financial has increased general commission structure, effective immediately, of 0.8% upfront on all their mortgage finance products and a 0.25% trail on most products.
Australian Financial national sales manager Alicia Carter says they see the value of broker-introduced business.
“I believe that brokers who have diversified into SMSF
lending, commercial, lo doc, nonconforming and non-resident lending find real solutions for their clients and should be rewarded,” Ms Carter said.
She said Australian Financial is currently implementing changes to their backend operations, product offering and broker commissions, to ultimately become the preferred non-traditional lender of brokers.
“What this means for most brokers is that they can still offer a competitive sub 5% interest rate with a rewarding commission structure of 0.8% upfront. I believe that 0.8% upfront and 0.25% trail reflects the true value associated with broker introduced business,” said Ms Carter.
“I also hope this new commission structure changes the mind of some brokers about the exclusive image of non-traditional forms of lending.”