Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

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

Bank to implement broker commission changes

calculator money dollars ta calculator money dollars ta
Charbel Kadib 5 minute read

A non-major lender has announced that it will change the way it remunerates mortgage brokers as it looks to strengthen ties with the third-party channel next year. 

Effective 1 March 2019, Citi will begin calculating upfront commission payments for home loans on the drawn balance, net of offset, with the commission calculation made seven calendar days from settlement.

Citi will also calculate trail commission on the utilised balance, net of offset account balance.

Citi noted that the changes will not be applicable to loans settled prior to 1 March 2019.

Advertisement
Advertisement

The bank has said that the changes reflect recommendations from the ASIC Review of Broker Remuneration and the Sedgwick review, both of which were supported by the Combined Industry Forum's (CIF) reform package.

Citi added that formal advice will follow, in conjunction with an amended Product Schedule to reflect the remuneration changes. 

The lender is expected to strengthen its ties with the broker channel from February 2019.

All four major banks have committed to adopting the new commission structure, as have lenders such as Adelaide Bank, AMP Bank, Bankwest, ING, Macquarie Bank, ME Bank, MyState Bank, Suncorp Bank, Virgin Money, and the Bank of Queensland. 

While Bankwest was the first lender to bring in the new commission structure (bringing it into being on 1 July 2018), NAB was the first major bank to move to the new commission structure, with both NAB (and its wholesale funding business Advantedge) moving to the new payment model last month. 

PROMOTED CONTENT


The CIF recently hosted an event that further outlined its work on mortgage broking reforms and reiterated that lenders are expected to make the remuneration changes by the end of this year.

[Related: Non-major confirms broker remuneration changes]

Bank to implement broker commission changes
calculator money dollars ta
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.

calculator money dollars ta
Charbel Kadib

Charbel Kadib

Charbel Kadib is the news editor on The Adviser and Mortgage Business.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

Email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

more from the adviser
Renee blethyn NextGen.Net appoints head of broker

NextGen.Net has appointed its inaugural national head of broker ...

BBS Summit 2021 ta Better Business Summit and Awards Sydney postponed

Due to the ongoing COVID-19 resurgence in Sydney, the NSW leg of ...

Andrew Moulds Darren Smith ta Lend adds FleetPartners to platform

Lend has integrated vehicle fleet leasing and fleet management pr...