This Commissions Guide article relates to BOQ Residential loans.
Articles related to other BOQ 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
| ex GST | inc GST |
Upfront | 0.65% | 0.715% |
Trail - Years 1-3 | 0.15% | 0.165% |
Trail - Year 4 | 0.2% | 0.22% |
Trail - Years 5+ | 0.22% | 0.242% |
Upfront & Trail
Upfront is be calculated on the funds drawn down at settlement of the facility less any balance held in an offset account 5 days after the settlement and is calculated on day 6 adjusted balance. This calculation also applies to Line of Credit facilities.
Any loan settlement occurring in the last 5 days of the month the upfront commission will be held over to the next month, the upfront commission is then calculated and paid on the day 6 adjusted balance and payment made the following month e.g. If the loan settles on the 26th June commission will be calculated on 1st July and be paid in August commission run.
BOQ is not obliged to pay commissions in the following instances:
Where customer enters into a further transaction with BOQ unless the further transaction is referred by the broker through Connective.
Where a customer refinances a facility under Connective to another facility and refinance is not referred through Connective.
A borrower terminates the facility under a right arising from the NCCP act
The borrower is in default where they fail to pay their repayment obligations under a facility
Where the borrower is more than 60 days in arrears.
Clawbacks
Period | % Clawback |
0-12 Months | 100% |
13-24 Months | 50% |
If at least 80% of the facility limit has not been drawn down between 6 months to 12 months of credit being made available, then 50% of the upfront commission will be repaid by the broker.
If the facility is not drawn down in full after 12 months of credit being made available under the facility, then 100% of the upfront commission will be repaid by the broker.
In addition, 100% clawback is payable where:
The facility falls 30 days or more in arrears within the first 90 days of credit being provided under the facility.
Within 12 months of credit being provided under the facility, BOQ obtains judgement in any court of law within Australia against the customer in respect of the amount owing under the facility.
The customer is in default (whether financial or otherwise) under their facility within 3 months, and default is not remedied within 3 months of the event default occurring