This Commissions Guide article relates to Westpac Commercial loans. Articles related to other Westpac 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.
Under the Westpac Commission model brokers can elect to be accredited under their Broker accreditation model or Referrer model.
Contents:
Commission Rates
Clawbacks
Commission Rates: Broker Accredited
Effective from 27th February 2023 for all new loans and increases to existing commercial loans, commission shall be negotiated between Westpac and the Broker up to the following, and subject to caps as applicable:
Tier/Product | Upfront | Trail |
Business Loan/Bank Bill Business Loan ≤ $4m* | 0.605% (capped at $45,000) | 0.275% |
Business Loan/Bank Bill Business Loan > $4m* | 50% of the Establishment Fee (capped at $45,000) | 0.275% |
Business Options Overdraft | 50% of Establishment Fee (capped at $30,000) | Nil |
Westpac Invoice Finance | 0.50% of take up ledger (capped at $20,000) | 0.275% |
International Trade Finance | 50% of Establishment Fee (capped at $30,000) | N/A |
Westpac Business One Loan | 50% of Establishment Fee | - |
Business Loans – Fixed <$500,000 (secured by residential property | 50% of Establishment Fee | 0.11% |
Commission Caps – An upfront cap on a term lending is the lower of 0.605% of exposure or $45,000.
There is no commission payable where the total deal size <$50,000.
Effective from 1st February 2021 commission rates were as per the table above except for Business Loans/Bank Bill Loans where the threshold for the differing commission rates was $3m.
Business products that commission can be paid on are restricted to the following:
Business Overdrafts
Business Loans
Bank Bill Business Loan
Westpac Business One Loan
Westpac Invoice Finance
Westpac Tarde Finance – Import & Export
Import Letters of Credit
Foreign Bills Negotiated
Foreign Currency Overdraft and Term Loans
Such additional or alternative products as Westpac may from time to time advise the broker are Business Finance products.
Commission Rates: Referrer Model
Effective from 1st February 2021 for all new loans and increases to existing commercial loans.
Tier/Product | Upfront | Trail |
≤ $3m | 0.605% | - |
> $3m | 50% Establishment Fee | - |
Business Overdraft | 50% of Establishment Fee (Capped at $30,000) | - |
Westpac Invoice Finance | 0.50% of take-up ledger (Capped at $20,000) | 0.275% of average monthly account balance. |
International Trade Finance | 50% of the Establishment fee (Capped at $30,000) | - |
Business Loans – Fixed <$500,000 (secured by residential property | 50% of Establishment Fee | - |
Commission Caps: An upfront cap on term lending is the lower of 0.55% of exposure or $45,000...
Upfront commissions are not paid until 80% of the facility limits are utilised (excludes property development)
There is no commission payable where the total deal size is <$50,000.
Business products that commission can be paid on are restricted to the following:
Business Overdrafts
Business Loans
Bank Bill Business Loan
Westpac Business One Loan
Westpac Invoice Finance
Westpac Tarde Finance – Import & Export
Import Letters of Credit
Foreign Bills Negotiated
Foreign Currency Overdraft and Term Loans
Such additional or alternative products as Westpac may from time to time advise the broker are Business Finance products.
Clawbacks: Broker Accredited
Effective 27th February 2023
If a loan is discharged within 12 months after repayment of upfront commissions, Westpac reserves the right to request repayment of commissions. The relevant clawback provisions are:
Within 12 months: 100%
Where a residential loan is part of a commercial loan transaction and the loan is discharged, Clawbacks apply as per residential loans
For property transactions, a clawback will no longer be triggered if 85% of the original limit is not drawn down
Loans prior to prior to 27th Feb 2023
If a loan is discharged within 18 months after repayment of upfront commissions, Westpac reserves the right to request repayment of commissions. The relevant clawback provisions are:
Within 6 months: 100%
6 or more to less than12 months: 75%
12 to less than 18 months: 50%
For property transactions, a clawback will be triggered if 85% of the original limit is not drawn down by the end of the term of the loan
Where a residential loan is part of a commercial loan transaction and the loan is discharged, Clawbacks apply as per residential loans.
Clawbacks: Referrer Model
If a loan is discharged within 18 months after repayment of upfront commissions, Westpac reserves the right to request repayment of commissions. The relevant clawback provisions are:
Within 6 months: 100%
6 or more to less than12 months: 75%
12 to less than 18 months: 50%
For property transactions, a clawback will be triggered if 95% of the original limit is not drawn down by the end of the term of the loan