This Commissions Guide article relates to Residential loans for Teachers Mutual Bank, Firefighters Mutual Bank, Health Professionals Bank, and UniBank.
Connective will maintain this guide to the best of its ability but cannot guarantee that the information within is complete, and/or in line with the latest guidance and policies of the lender. If you believe anything is missing or inaccurate, please contact us.
Contents:
Commission Rates
| ex GST | inc GST |
Up Front | 0.6% | 0.66% |
Trail | 0.2% | 0.22% |
Upfront Commission
Initial upfront commission is based on the outstanding balance of the loan less any offset amount both as measured on the last day of the calendar month in which any part of the approved principal of the loan was first advanced to the borrower.
Where the loan is for the purpose of residential construction and the principal amount is to be advanced progressively, at the agreed rate based on the total contracted amount of credit to be advanced, provided however that if the total contracted amount of credit is not fully drawn within 12 months of the date of Loan Contract Teachers Mutual Bank will require the broker to repay the upfront commission with respect to the undrawn amount.
No upfront commission is payable where in respect of initial commission and construction commission where the contracted amount of credit is less than $50,000.
Upfront commission is calculated based on the outstanding balance of the loan less any offset amount both as measured on the last day of the calendar month in which any part of the approved principal of the loan was first advanced to the borrower.
Deferred Commission
Deferred commission is payable, at the agreed percentage, on the difference between the initial balance and the outstanding balance of the loan, less any offset, measured on the first (12 month) anniversary of the advance of the initial balance (anniversary balance).
In the case of Deferred Commission, no upfront commission will be paid, where the anniversary balance does not exceed the initial balance by more than $20,000.
Trail Commission
Will be suspended on any loans that are in default for such period commencing 60 days after the date on which the payment is due until the date when the loan is not in default.
The broker shall not be entitled to a resumption of payment of trail commission if the loan is subsequently in default within 90 days after the borrower has rectified the original default by making the overdue payment. In such instance trail commission will not resume again until the subsequent default is rectified.
Clawbacks
Paid out Period | UFC % Clawback |
0-12 months | 100% |
13-18 months | 50% |