Second tier lender Adelaide Bank has confirmed it has no plans to adjust its “clawback or flat upfront policy”.
According to the bank’s general manager third party mortgages Damian Percy, the lender is happy with its current commission structure, referring to it as “simple, transparent and predictable”.
Mr Percy said the recent changes made by both Westpac and St george could have serious ramifications to a broker’s bottom line.
“The commission structures between lenders, and even between a lender’s products, have become highly variable,” he said.
“Clawbacks are extending in time and magnitude, upfronts are subject to a range of contingencies of varying transparency, and trails are staggered in both timing and quantum.
“Though some industry changes over the last few years were legitimately seeking to align commissions with value, the end result has arguably been increasing complexity and decreasing certainty.
“Brokers who aren’t already doing so would be well served to look at the historical behaviour of their book, particularly those clients refinancing or selling within two years, and come to understand what this might mean in the future,” he said.