Powered by MOMENTUM MEDIA
subscribe to our newsletter
Major bank to announce ramped trail commissions

Major bank to announce ramped trail commissions

One of the big four lenders is considering ramping its trail after announcing changes to its commission structure.

CBA yesterday announced that from 1 January 2015 it will implement a standard commission structure which will include first-year trail of 0.15 per cent on all new settlements.

The bank is currently in discussions with broker groups on a second commission plan offering to increase trail payments in subsequent years, which it says may be suitable for some brokers.

Advertisement
Advertisement

Full details of the new offer will be announced once a deal is struck between CBA and mortgage aggregators.

Meanwhile, the lender will pay an extra 10-basis point upfront commission on loans settled between October 1 and December 31 this year.

“We are very excited to reward brokers for their efforts and loyalty to the Commonwealth Bank,” CBA executive general manager retail products and third party banking Lyn Cobley said.

“We recognise mortgage brokers are an important part of the bank’s home loan distribution strategy and they assist in meeting our customers’ financial needs,” Ms Cobley continued.

“We are pleased to support this channel so we can continue to help more Australians buy their own home than any other bank,” she said.

The news comes after NAB announced the reintroduction of first-year trail earlier in the year.

 

Major bank to announce ramped trail commissions
mortgagebusiness

 

Latest News

The prudential regulator said the self-assessments carried out by financial institutions have shown that CBA is not the only one in the indu...

The chair of a European-based financial regulator has defended ASIC’s new regulatory remit in response to suggestions that a renewed focus...

The dispute resolutions body is seeking recruits for several newly created senior positions to support its transition into a new phase of op...

FROM THE WEB
podcast

LATEST PODCAST: How the mortgage sector will be impacted by the federal election

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.