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Non-bank refuses to clawback commissions

by Staff Reporter7 minute read
The Adviser

Staff Reporter

One non-bank lender has announced it will not introduce commission clawbacks when the deferred establishment fee ban comes into effect from 1 July.

Following hot on the footsteps of Mortgage EZY's announcement yesterday, Australian First Mortgage also advised its broker partners that it will not charge clawbacks on its AFM Complete Product Option and AFM Flexible Product Option for a limited time.

While the non-bank sector has fought against the government’s deferred establishment fee ban ever since it was a proposal, AFM’s director Iain Forbes said the sector now has no choice but to embrace the changes and take whatever steps necessary to ensure its product suite remains competitive against Australia’s other lenders.

“These are exciting times for the non-bank lender, as early repayment fees will no longer be payable in respect of mortgages written by AFM,” Mr Forbes said.

“The removal of deferred establishment fees places AFM on the same playing field as banks, removing one more barrier from the upfront sales process.”

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