Source: Resimac's website
The non-bank lender has announced changes to its commission structure, including the standardisation of the upfront and trail commission rate for all of its loan products.
Non-bank lender Resimac has announced updates to its broker commission matrix, effective 1 March 2019.
In September, prior to the non-bank’s rebranding of Homeloans and RESIMAC to Resimac, the lender announced that it would be implementing the Combined Industry Forum’s reform proposal to pay upfront broker commission based on the drawn loan balance rather than the total approved facility amount and net of any offset facility.
However, the changes applied only to Homeloans’ Ultra Plus mortgage product – funded by NAB-owned wholesale funder Advantedge.
Resimac has now announced broader broker commission changes, including the standardisation of:
Resimac revealed that as of 1 March 2019, it would pay an upfront commission of 0.65 per cent and a trail commission of 0.15 per cent for all new loans and principal increases with a minimum loan size of $50,000 and $40,000, respectively.
The lender will also apply 100 per cent clawback on all products within 12 months and 50 per cent clawbacks on products from 13 to 24 months.
Resimac added that it would not pay commissions for conversions or security substitutions.
Further, in line with the CIF’s recommendations, Resimac announced the following commission changes for its mortgage products:
Resimac Prime and Resimac Specialist
Resimac Ultra Plus
For new settled loans (excluding construction loans), upfront commission will be calculated as follows:
For all new settled loans and variations to existing settled loans for construction purpose, upfront commission will be calculated on a settled loan as a percentage on the facility limit on the first settlement date.
Commission will not be paid for subsequent drawdowns for any term loan which is for construction purposes only, for any variation of term loan, or if the purpose of the subsequent drawdown is not disclosed in the loan application.
The non-bank added that for variations to existing settled loans (excluding construction loans) where the debit balance drawn increase is of at least $20,000, Resimac will pay a commission on the net lending increase five calendar days after the drawdown date of the variation.
[Related: Non-bank lender changes broker commissions]
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