This Commissions Guide article relates to Auswide Bank Residential Loans.
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 |
Upfront | 0.70% | 0.77% |
Trail | 0.182% | 0.2% |
Upfront
The Initial Referral Fee will be calculated based on the Settled loan balance of a new loan or broker introduced further advances.
Broker Introduced Further Advances will form part of the new book and will receive the Initial Referral Fee based on the net increase.
Other Further Advances, in respect of loans, shall generate no Initial Referral Fee in respect of that Other Further Advance.
Trail
Trail commission will be paid within fourteen (14) days after the end of each calendar month and is calculated on the unpaid daily balance for each day of the monthly period.
No trail shall be paid in respect of an existing loan or a new loan where a Further Advance is made (not introduced by the broker) in respect of that loan.
Auswide Bank may, in its absolute discretion continue to pay trail commission to a broker where Auswide Bank has provided another further advance through its branch network but shall not be required to make such payments. Auswide Bank in using their discretion, may have regard to such circumstances with the terms of the agreement with Connective, including level of compliance by the broker and the number of borrowers successfully referred in the past to the lender by the broker.
In the event that a loan is more than 30 days in arrears for any part of the month, or not in compliance with the terms and conditions of the loan for any part of a calendar month, the trail commission shall be suspended for the whole of that calendar month (even if that loan subsequently returns to full compliance later in that calendar month).
If a loan is then brought back within compliance with its terms and is no more than thirty (30) days in arrears, commission trail shall again apply, but only from the next calendar month.
Notes & Definitions
Settled Loan means a new loan or broker introduced further advance, where a borrower referred to Auswide by a broker, has been provided with funds from Auswide on a completed loan
Settled loan balance means the total sum drawn down by the borrower from Auswide on settlement
Broker Introduced Further Advance means a further advance (excluding redraw component) to an existing loan and where that application for further advance has been introduced by the broker.
Other Further Advance means a further advance (excluding redraw component) where the application for that further advance is not introduced by the broker. For example, the Other Further Advance may be introduced to the lender by another broker or by the lender’s own branch network.
Unpaid Daily Balance means the difference between all amounts credited and all amounts debited to the specific Settled loan account at the end of the given day and includes any funds held in offset accounts.
Clawbacks
The Initial Referral Fee (Upfront) for a particular loan must be refunded to the lender in full if the loan is repaid in full or otherwise returned to zero balance within twelve (12) months from the date on which the loan became a settled loan
Auswide Bank may offset against subsequent Initial Referral Fees or Commission Trails, in respect of other loans, the refund due.