One bank has announced an increase in broker commissions as part of an overall revamp of its third-party service package.
Heritage Bank announced on Friday that upfront commissions will increase from 0.55 per cent to 0.65 per cent for loans funded after 1 June 2015.
The lender also announced it will employ at least four additional BDMs to service its mortgage broker partners; introduce upgraded technology in its online platform to improve service quality; and double the sponsorship support it provides to the sector.
Heritage’s general manager of retail services, Paul Francis, said the revamped package of benefits signified Heritage’s commitment to the broker sector and its importance to the bank’s operations.
“Heritage has been operating in the mortgage broker market for almost 20 years. We stuck by the sector even through the GFC when others pulled out,” Mr Francis said.
“In 2012 we expanded our presence to go nationwide with mortgage products through our broker partners, and we now source around half of our home loans through this sector.
“The broker channel is vital to Heritage’s continued growth and expansion,” he said.
The bank has broker processing teams based in Brisbane, Melbourne, Adelaide and Perth, and will appoint additional BDMs in coming months.
Mr Francis said the upgrade of Heritage’s online platform for brokers will improve service levels, especially in accreditation and training.
“The mortgage broker sector is extremely competitive and we need to continually review and improve our service levels,” he said.
“We believe that the overall package we offer is fantastic for brokers and their customers – great service, great products and great rates, with the people-first approach that puts the emphasis on building an equally great relationship with our broker partners.”
[Related: Heritage CEO to step down]
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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