Non-major lender AMP Bank has announced a number of commission changes which will affect brokers whose clients wish to increase or restructure their loans internally.
Effective from 5 January next year, the bank will base commissions on the net difference of the new and outgoing loans rather than the new loan limit. Increases and restructures will be processed as new loans with the bank.
“If the new internally refinanced loan’s limit is less than the original loan being refinanced then no commission is payable on the new loan,” the bank said in a note to brokers released last Friday (24 November).
Commissions payable from the end of January next year will be impacted. Standard clawback rules and processes will remain unchanged and will continue to apply to the original loan.
An AMP spokesperson told Australian Broker
that these changes ensured remuneration reflected compensation for new lending while aligning to industry standards.
“AMP is continuing to pay commission on a competitive basis and this adjustment is in line with market practice for compensation on new lending,” she said.
The changes will only apply to loans settled on or after 5 January.
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