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Banks Gearing up in Increase Broker Comissions ?

 

Title: Major bank to review broker comissions
Source: Mortgage Business
Website: http://www.mortgagebusiness.com.au/breaking-news/3077-major-bank-to-review-broker-commissions
Issued: 10th December 2009

There’s growing industry speculation that one of the major banks is gearing up to pay greater commissions to its broker channel.

Connective principal Mark Haron told Mortgage Business yesterday that the aggregator was currently in talks with one of the majors about reviewing its commission structure, though he remained tight lipped as to the lender's identity.

It is understood that the lender will introduce bonus commission based around quality conversions.

“Ultimately, this is good news for the industry as it will mean greater commissions for brokers, who suffered last year when commissions were cut across the board.”

In the first half of last year, many of the major banks and second tier lenders cut their commissions to the broker channel.

Westpac cut its upfront commissions by nearly 29 basis points to 50 basis points, with trail commissions slashed by 40 per cent to 15 basis points.

CBA also cut commissions last year, with the bank’s head of third party banking Kathy Cummings claiming the combined pressures of the economic environment as well as the bank’s commitment to remain a strong industry partner led it to review the profitability of its third-party business.

 

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