This Commissions Guide article relates to ING Commercial loans. Articles related to other ING products can be found here:
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
Upfront Commission
Rates applicable to all commercial loans (with new security property) settling from 1 March 2018:
Facility Amount | ex GST | inc GST |
Below $3,000,000 | 0.55% | 0.605% |
$3,000,000 or more | Up to 50% of the Establishment Fee (paid to ING by the debtor under the loan), which is determined by ING in respect of each loan (in discussion with the broker) prior to ING’s formal approval of the loan) |
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ING will pay an upfront for each settled loan, in respect of a customer introduced to ING provided that the broker is an NCCP authorized person at the time that ING entered into the relevant loan agreement with the relevant customer.
With respect to additional or increased limits on existing loans, an Upfront Fee will be payable only on the amount increased above the original approved limit. Trail will continue to be paid on balance outstanding. In the event the existing loan originated through a non-intermediary channel, an Upfront Fee will be payable only on the amount increased above the original approved limit, but no ongoing trail will be paid on the loan. Additional Upfront Fees will not be paid on increases of less than $30,000 on Commercial Loans.
If the loan the broker introduces to ING is a refinance of an existing ING loan, then the Upfront Fee payable on that loan will only be with respect to the difference between the outgoing ING loan and the new loan the broker introduced to ING.
If the loan the Broker introduces to ING is a substitution of Security only and there is no additional borrowing or funding involved, the broker will continue to receive Trail but no Upfront Fee. Where this also involves an increase of funds, an Upfront Fee will be paid on the increased portion only.
Upfront and trail are not payable on a loan if that loan is an ING Direct branded workplace or staff loan.
Trail Commission
Rates applicable to loans that settled from 1 March 2018
| ex GST | inc GST |
Life of loan | 0.2% | 0.22% |
Trail is calculated on the daily balance of the principal amount outstanding in respect of each loan introduced by a broker.
Trail is not payable on a loan while it is in default over 60 days
Trail is not payable on a Line of Credit facility, where the loan balance exceeds the customer’s credit limit by 2.0% or more
ING will pay the broker a trail for continuing to have a relationship with the customer the broker introduced to ING and for managing the key customer transaction. If in ING’s reasonable opinion the relationship is not maintained and/or the customer approaches ING for a variation directly the ongoing trail on the customer’s settled loans will cease to be paid to the broker. If the customer approaches ING through another Introducer’s Intermediary for a variation, ING will move the customer to the new introducer and the ongoing trail on the customer’s settled loans will be transferred to the new intermediary.
Clawbacks
Period | % Clawback |
Loan is repaid on or before the first anniversary of that loan’s settlement date | 100% |
Loan is repaid in full within the period greater than the first anniversary up to the date which is 18 calendar months from the loan’s settlement date | 50% |
If, the loan account is in arrears by 60 days or more within the six month period starting from the settlement of the loan, ING may claw back, and the broker must therefore repay, the entire (100%), Upfront fee paid to the broker in respect of the loan.
If, in respect of any loan, if there are any principal reductions, or partially discharged residential loan, of $50,000 or more within 18 month period starting on the settlement of the loan, ING may claw back, and the broker must therefore repay, an amount equal to a percentage of the Upfront fee proportionate to the discharged amount.