A non-major bank has announced that brokers whose customers have been approved for an additional four months of loan deferral due to COVID-19 will continue to receive trail commission over the period.
Suncorp has attributed the decision to its commitment to supporting its broker network – and customers – through the challenges created by the pandemic.
“We understand that many of our brokers are small businesses themselves which is why we have made the decision to continue to support brokers with trail commission over this additional period,“ said Bruce Rush, Suncorp executive general manager of consumer lending.
The group is currently working with impacted customers as they approach the end of their six-month deferral to determine whether or not this additional four-month extension is required.
“While many of our customers have pleasingly been able to resume their mortgage or business loan repayments, a proportion of customers are requiring an additional four months as they continue to recover from the economic fallout of COVID-19,” Rush explained.
“We understand this is a difficult time for a proportion of our customers so we are doing all that we can to get them back on track.”
The bank is urging brokers to continue maintaining open lines of communication with their customers, in order to provide individualised guidance and boost consumer confidence through what has been an incredibly stretching time for many Australians.
Finance Brokers Association of Australia (FBAA) managing director Peter White AM praised Suncorp for its approach following the bank's announcement on 12 October.
“Brokers have always stood by their clients and supported the lenders, so it’s great to see that the banks and lenders are giving counter support to brokers," said White.
“The Finance Brokers Association of Australia is calling upon other lenders to follow Suncorp Bank in extending trail commissions for brokers whose customers have been approved for additional months of loan deferral due to COVID-19.
“Customers are not actually in arrears when they are on a loan deferral so this initiative from Suncorp is showing positive assurance in standing with brokers and their customers during this tough time,” he finished.
This story has been updated to reflect additional reporting