The bank will move to a single upfront commission structure in New Zealand from 1 June 2026.
Westpac New Zealand has confirmed that it will scrap trail commissions for mortgage advisers.
In comments to The Adviser, Westpac New Zealand confirmed that the bank will move to a single upfront commission structure for its mortgage adviser network, with the new structure to automatically apply to all new home loan settlements from 1 June 2026.
Mortgage advisers will receive 0.90 per cent of the value of new loans, replacing the current combination of a 0.60 per cent upfront payment and trail commissions of 0.20 per cent per annum.
The major will also introduce a 0.30 per cent top-up payment for new loans settled between 15 October 2025 and 31 May 2026.
Westpac NZ national manager of third-party channels, Chris Poledniok, told The Adviser that the top-up payment would effectively increase the total upfront commission to 0.90 per cent during this period.
“As part of this change we’ll also put more resources into improving turnaround times and investing in digital enhancements, to help provide a market leading experience for advisers and their customers,” he said.
“The new structure is designed to provide highly competitive pricing, align with evolving industry standards, drive better outcomes for customers, and ensure we’re well positioned to support advisers into the future.”
Poledniok encouraged advisers to contact their Westpac business development manager or reach out to their head group for further information.
“We remain in close contact with adviser head groups to help them support their advisers and address any concerns that come up through the process,” he said.
“We have long-standing relationships with advisers and deep respect for the work they do to support our customers. We’ve listened to adviser head groups and adapted our approach through this process.
“We appreciate these changes may be unsettling for some advisers. We’re committed to supporting them through this transition and making sure they have the tools they need to continue delivering great outcomes for customers.”
The comments from Poledniok come in response to an article published on The Adviser earlier this month, which detailed that Westpac New Zealand had been in talks with aggregators and broker groups about plans to axe trail commissions for mortgage advisers.
Many New Zealand banks have already made the decision to remove trail commissions on home loans.
In 2006, several banks changed adviser remuneration from 0.65 per cent upfront and 0.20 per cent trail, to an average of 0.85 per cent upfront only.
Westpac NZ itself has previously removed trail in New Zealand, before reintroducing it in 2014 (as did several other banks). Banks that do not pay trail commission to mortgage advisers in New Zealand include ANZ, ASB, and TSB, which all pay an upfront commission of 0.85 per cent.
[Related: Westpac to scrap trail commissions in NZ]
