Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

St George simplifies broker commissions

Staff Reporter 4 minute read

St George has announced a simplified broker commission structure that aims to provide brokers with less variability and increased certainty of income.

St George general manager of intermediary distribution Steven Heavey told Mortgage Business that the bank’s previous commission structure was unnecessarily complex.

“We have worked closely with the industry since introducing the changes in June 2008 and while our offering was one of the more attractive in terms of commission levels, there has been room for improvement in terms of its complexity to what degree an individual broker could influence the outcomes, and we have addressed these issues,” Mr Heavey said.

The new structure, which will come into effect from 1 October 2009, will have an upfront commission of 0.50 per cent on standard loans and an extra upfront commission of 0.10 per cent for conversion rates greater than 70 per cent.


Moreover, the new structure includes trail commissions of 0.15 per cent per annum, with trail payments calculated on gross balances.

According to Mr Heavey, the new structure will make it easy for brokers to declare their earnings.

“The new structure will help brokers meet the requirements of the soon to be released broker legislation, where they are required to declare everything to the public,” he said.

But while the new commission structure is less complex than its predecessor, Connective principal Mark Haron said the new structure represents a reduction in commission.

“The previous structure was simply too complicated and this new method is a lot easier to navigate, however, brokers will be forced to take a cut in their commission under this simplified structure,” Mr Haron said.


St George simplifies broker commissions
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.



more from the adviser
uptick graph Non-majors and non-banks continue to dominate: Broker Pulse

A greater proportion of brokers are sending their clients to non-...

construction equipment ta Demand for excavators up 191% YOY: CBA

The major bank’s data has revealed a jump in asset finance grow...

mortgage money house Hot Property: The biggest property headlines from the week 7-11 June

The weekly round-up of the biggest news stories from across Momen...