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Non-bank abolishes clawbacks

by Staff Reporter8 minute read
The Adviser

Staff Reporter

In a bid to enhance its competitive position in the mortgage market, one non-bank lender has announced it will not introduce commission clawbacks when the exit fee ban comes into effect.

Pioneer Mortgage Services’ chief operating officer Nicole Pryde said brokers were becomingly increasingly concerned about the introduction of clawbacks.

Ms Pryde said brokers work hard for their commissions and should not have them stripped away on the back of government legislation.

“We have listened to our brokers and we are pleased to confirm that we will not introducing any new clawbacks. Pioneer is also removing our existing 12 month clawbacks,” Ms Pryde said.

All Pioneer loans settled after 1 August will also be on a new commission structure offering brokers one per cent upfront.

Ms Pryde said the lenders commission structure was very competitive in comparison to other lenders, making it an attractive alternative for brokers.

“Brokers can receive their commissions upfront to use in their business now without the fear of it being clawed back in the future. Brokers can also be assured that their existing Pioneer loans with trail will remain in place,” she said.

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