The Commonwealth Bank has announced the new commission structure it foreshadowed earlier this year.
From January 1, Commonwealth Bank will implement a standard commission structure that will include first-year trail of 0.15 per cent on all new settlements.
The bank also announced that it is in discussions with broker groups on a second commission plan offering increasing trail payments in subsequent years.
“Full details will be announced once the bank has reached agreement with the broker head groups,” it said.
Commonwealth Bank will also pay an extra 0.10 per cent upfront for loans settled between October 1 and December 31.
The bank said the introduction of first-year trail shows its commitment and investment in the mortgage broking channel.
Executive general manager of third-party banking Lyn Cobley said Commonwealth Bank is excited to reward brokers for their efforts and loyalty.
“We recognise mortgage brokers are an important part of the bank’s home loan distribution strategy and they can assist in meeting our customers’ financial needs,” she said.
“We are pleased to support this channel so we can continue to help more Australians buy their own home more than any other bank.”
[Related: CBA cuts fixed rates by 50 points]