Powered by MOMENTUM MEDIA
the adviser logo
Broker

Virgin Money changes broker remuneration

by Annie Kane4 minute read

The non-bank lender has announced that it will update the way it calculates broker commissions from 1 January 2019.

Virgin Money has announced that it will change the way it remunerates mortgage brokers from next year, moving in line with the recommendations from the ASIC and Sedgwick reviews, which were backed by the Combined Industry Forum package of reforms

Effective 1 January, Virgin Money will calculate upfront commission on new Reward Me Home Loans and variations based on the drawn down loan balance, net of offset and redraw facilities, rather than the total approved facility. 

The calculations will be based on the balance on the fifth calendar day after draw down.Christian York, Virgin Money’s head of distribution, said: “These changes reflect the importance Virgin Money places on ensuring our customers obtain loans which are appropriate in both size and structure, are affordable and meet their individual needs and objectives at the time of borrowing.”

Advertisement
Advertisement

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 and Suncorp Bank. 

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.

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: Major bank changes broker commissions]

 

virgin money loan

Annie Kane

Annie Kane

AUTHOR

Annie Kane is the editor of The Adviser and Mortgage Business.

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

CEO Sleepout Pepper Money

Mortgage industry raises more than $160k in CEO Sleepout

On 23 June 2022, several CEOs and directors in the mortgage and finance industry spent a night without shelter to...

READ MORE
alex whitlock

New membership program revealed for The Adviser

Members will be able to access exclusive sales and marketing strategy, business intelligence and exclusive market...

READ MORE
Hot property TA

Hot Property: The biggest property headlines from the week 27 June to...

Welcome to The Adviser’s weekly round-up of the headline stories and news that are important not only for the...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more