A regional bank has announced a permanent increase of five basis points to its fourth-year trail commissions, effective next week.
Suncorp Bank revealed that after 27 February, it will increase its trail in year four onwards from 20 to 25 basis points plus GST.
Suncorp Bank head of intermediaries Steve Degetto told The Adviser that the initiative is a change that reflects the value customers provide as they stay with the lender for longer.
“It is something we want to identify with brokers that have an aligned approach to customers,” Mr Degetto said. “Happy customers for longer is what we are looking for.
“We are going to share some of that reward for brokers who do that for us. We are prepared to reward them for that longer loan life.”
The new offer will come into effect on all new loans settled from 27 February and follows a successful series of competitive rate offers from the non-major.
Last year, Suncorp ran a 12-week campaign to raise awareness among brokers that it was a genuine alternative to the majors.
Mr Degetto said the campaign reaffirmed that brokers are open to a genuine alternative when the offer is right for their customers.
“We had nearly 4,000 brokers write at least one transaction with us in that 12-week period,” he said. “We were genuinely surprised and excited about the extent to which we were supported.”
Mr Degetto said the bank’s portfolio reflects consumer behaviour around the use of mortgage brokers.
“Customers like to use a broker to assess the market for them and to provide advice, guidance and support,” he said.
“Certainly, outside of Queensland – where we don’t have our retail network – that is where we will write most of our business.
“We are focusing on how we can work better with brokers and provide what they are after,” Mr Degetto added.
[Related: Suncorp announces Black Friday rate cuts]