Bank reveals new rates and commission structure

The Bank of Sydney has commenced a pilot launch with a number of boutique aggregators and is in discussion with larger players in anticipation of a full launch early next year.

As revealed by Mortgage Business in August, the lender rebranded as the Bank of Sydney in May last year and is gaining momentum ahead of its full launch into the broker channel under the consultancy of third-party specialist Steve Sampson.

Speaking to Mortgage Business, Mr Sampson said that he wants to show mortgage brokers that their intention is to support the third-party channel with competitive interest rates and fees and a fair clawback policy.

“We have come to the market with a mandate of a fair deal for everyone,” he said.

Borrowers will benefit from a 1.69 per cent discount off the bank’s standard variable rate for the life of the loan, which currently equates to 4.69 per cent per annum.

“We offer a free 100 per cent offset account and an annual fee-free credit card,” Mr Sampson said.

“We’ll also give the customer a $500 cashback on the package after they settle,” he said. “Standard application fees and standard valuation fees are covered too.”

Bank of Sydney is paying an upfront commission of 0.70 per cent and a trail of 0.20 per cent from day one.

“We’ve also listened to what ‘irks’ brokers and one of their major ‘gripes’ is clawback provisions after all the hard work has been done,” Mr Sampson said.

“To this end we think we have one of the fairest clawback policies in the market at 70 per cent of the upfront in year one only,” he said.

Mr Sampson said that the pilot is taking shape and giving the bank an opportunity to test its online lodgment platform.