Westpac Commercial

Commission Rates: Broker Accredited

Commissions Rates: Referrer Model

Clawbacks

Topups and Refiances

Personal Loans

Westpac will pay the broker an upfront commission for each approved application for approved finance, by way of an initial upfront commission (less any amounts in any offset account which is linked to the loan) on the Seventh business day following settlement, (for settlements from 1 May 2024, previously 3 days) for new standard home loans along with Subsequent up-front commission.

No upfront commission is payable where the amount (less any amounts in any offset account which is linked to a loan), or the drawn top-up amount or increase of the approved application is less than $50,000. Further principles governing payment of upfront commission and trailing commission in respect of applications involving refinances or top-ups of existing Westpac loans are set out in introducer kit.

Upfront shall be calculated, if the loan is not intended to be drawn in one amount (for example a continuing credit contract or a progressive drawdown loan) on the credit limit for that loan, provided that if the loan has not been fully drawn within 12 months of the date of payment the Initial upfront commission for that loan, Westpac may require the broker to repay the amount of the initial upfront commission.

Split Loans (sequence loan) which are settled within same month, upfront will be paid calculated on the end of month balance net of offset balance (i.e., end of month balance less end of month offset balance).

Construction Loans – These loans must be entered as a building loan, renovation loan or progress draw loans in system using CNSTR purpose code for Construction or RENIM purpose code for Renovations or Improvements. For these loans upfront will be calculated on the loan limit.

Westpac Line of Credit (Equity Access Loan), Upfront will be calculated using net of offset calculation.

If (i) an applicant draws a loan for the acquisition of land and (ii) the broker is paid an upfront commission with respect to that loan, and (iii) the applicant subsequently takes out a loan for construction on the land, and uses part of the proceeds of that loan to pay out the land loan, then for the amount of the subsequent loan referred to at (iii) above for the purposes of calculating upfront commission payable to the broker will be reduced by an amount equal to the amount of the loan referred to in (i).

If (i) the broker is paid an upfront commission with respect to an approved application for residential finance and (ii) subsequently an application for residential finance is approved and is used all or part to payout and existing loan referred to in (i) then the amount of the subsequent loan referred in (ii) for the purpose of calculating upfront will be reduced by an amount of the loan referred to in (ii).

A product switch is where the applicant keeps the same loan number or switches to a combination loan, at least one loan of which retains the same loan number.

Westpac does not pay upfront commission on bridging loans.

The subsequent commission will be calculated after the first anniversary of the settlement of a standard home loan, calculated using current upfront commission percentage of the largest eligible balance at any time in the 12-month period since settlement, less the initial upfront commission previously paid for that loan. If the calculation of Subsequent upfront for a loan is less than $0.00 no subsequent upfront commission is payable for that loan.

Subsequent upfront commission is only payable on new standard home loans (and not equity access loans, loans under continuing credit contracts, progressive drawdown loans, other loans or top-ups or increases to existing standard home loans).

Standard Home loans are Rocket Repay Home loans, Rocket Investment loans, Flexi First Option loan, Flexi First Investment loan, Fixed Rate home loan, Fixed Rate Investment property loan, Variable Rate Investment property loan, Premium Option home loan and any other type of finance notified to the broker by Westpac from time to time.

The Subsequent upfront commission will be payable on or before the 22nd day of the second month following the anniversary of settlement.

Westpac pay trailing commission where the loan has a balance outstanding at the beginning and at the end of commission period (which is defined as a calendar month) for which the trailing commission is calculated. The loan must have a balance at 12.01am on the first day of the month and at 12.00pm on the last day of the month for trail to be paid on a loan in that month.

Westpac will not pay trailing commission where a loan has, at any time during the commission period, any payments which, are more than 30 days overdue for residential finance and 60 days overdue for approved finance other than residential finance.

Westpac calculate trail on the eligible loan balance for all loans settled pre-November 2010. For any loan settled from 1st November 2010 the eligible balance for the purpose of calculating trailing commission includes any amount in an offset account which is linked to that loan at, or any time after, the time that the loan is settled, and trail commission is paid on the net outstanding balance.

Westpac does not pay trail commission on bridging loans.

For loans for construction purposes only, if at the date of termination or discharge of that loan less than 95% of the credit limit has been drawn, except where a relevant clawback amount is payable, the broker must repay an amount equal to the difference between the initial upfront commission paid by Westpac for that loan and the initial up front commission that would have been payable by Westpac for that loan had the credit limit for that loan at settlement been equal to the highest amount drawn under the loan as at the last business day of the commission period to the date of termination.

If Westpac has paid the broker an upfront commission, and a loan which settles (other than a switch to another Westpac product or otherwise than in the course of what Westpac determines in its absolute discretion to be a bona fide repayment or refinancing by customer) within any clawback period including any Subsequent payment of commission then broker must repay the amount specified.

In the event of a loan book transfer, the early repayment clawback (as outlined above) will be applied to the New Broker, instead of the original broker.

Westpac pays upfront commission (for Standard Residential and Construction Loans) on any loan amount increase on an existing loan (top up) where the increase is $50,000 or more and will further pay trailing commission on the increased loan amount. No upfront commission will be paid if the top up loan is less than $50,000, however, trailing commission will be paid on the increased loan.

Where the top up on an existing loan is originated by a broker other than the broker that originated the existing loan, the trailing commission on the increased loan amount (existing loan balance plus top up amount) will be paid to the broker that originated the top up once the top up had been drawn. Trailing commission to the broker that originated the existing loan will cease.

If a change of loan facility can be accommodated via the portability process, there will be no change to commission rate paid on the loan. If portability is unable to be utilised and the loan is required to be re originated, then the trail will be reduced.

Refinance of an existing loan less than 2 years old, clawback may apply (100% up to 12 months and 50% from 12 months to 2 years). However Upfront will be paid on new loan based on end of month balance net of offset balance.

If the Flexi loan is discharged within 6 months of Settlement, then the broker must repay 100% of the upfront commissions for that loan

If the Flexi Loan has an average balance of less than 50% of the limit within 6 months of settlement, the broker must repay 100% of the upfront commission for that loan