Better Choice streamlines clawbacks for commercial products

Better Choice director Allan Savins said the changes were carefully designed to simplify the process for brokers engaging in commercial lending.

He said the move will allow brokers to offer innovative lending solutions to their small and medium-sized enterprise (SME) customers.

“One of the biggest changes is removing all clawbacks on the broker commissions for commercial products. This is an important step to make it easier for brokers to diversify into commercial lending,” Mr Savins said.

In addition to the clawback adjustment, Better Choice has waived application and risk fees on commercial loans ranging from $300,000 to $2 million until further notice.

“Other steps we are putting in place to help brokers write commercial business include eliminating yearly reviews on certain types of commercial loans, which can cost consumers extra fees each year,” he said.

“Brokers who have a residential accreditation with Better Choice can also write commercial as well. One accreditation covers them for both residential and commercial lending.”

This move aligns with a broader industry trend toward the elimination of clawbacks and the introduction of more favourable products across both mortgage and commercial sectors.

Pepper Money and Mortgage Ezy, for instance, have already removed clawbacks from certain commercial mortgage loans and products.

Rate Money has also joined the fold, recently announcing the removal of clawbacks from specific owner-occupier and investor loans.

Meanwhile the Commonwealth Bank (CBA) updated its clawback policy to ‘benefit brokers’; the move was met with criticism from the industry.

Better Choice’s commercial suite specialises in alt doc loans as well as products for commercial self-managed superannuation funds (SMSF) and lease docs.

Better Choice appoints new BDM

In addition to this initiative, Better Choice has also appointed a specialised commercial business development manager.

Shay Lena has assumed the role of NSW state manager for commercial strategic partnerships.

“Shay has more than 25 years’ experience working directly in the third party, non-major finance industry, and his number one focus is to be a genuine business partner for all brokers writing commercial loans, helping both experienced and new-to-commercial loan writers get the deal done,” Mr Savins said.

“He has a passion for credit knowledge and his areas of expertise cover multiple lending segments, specialising in self-employed, commercial, SMSF, residential and also, alternate lending markets.”

[Related: Broking industry calls out CBA clawback]