This Commissions Guide article relates to BOQ Commercial / Business and Specialist 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 | Applicability |
Upfront | 0.55% | 0.605% | For loans less than $3 million upfront is 0.605% of the facility limit. |
Upfront | 60% | 66% | For loans above $3 million, 66% of the loan establishment fee is paid. |
Trail | 0.25% | 0.275% | Basic trail is 0.275% (incl. GST). |
Trail | 0.30% | 0.33% | Additional trail can be paid to a maximum of 0.33% (incl. GST). Refer to Product Guide below. |
Upfront & Trail
For residential loans written as part of a commercial transaction, upfront commission will be calculated on the funds drawn down under the facility net of balances held in any applicable offset account on the day that is 5 days after draw down.
The broker is not entitled to payment of the Upfront (Referral Fee) where a future transaction between BOQ and an applicant unless the future transaction is referred by the broker.
Specialist Loans
Property Development
Upfront | Trail | Notes |
Up to 0.66% (incl. GST) of the loan establishment fee | Nil | Not Applicable |
Retail Loans
Upfront | Trail | Notes |
0.715% (incl. GST) of the funds drawn down under the facility net of balances held in any applicable offset account on the day that is 5 days after draw down of the facility. | Years 1 to 3 – 0.165% (incl. GST)
Year 4 – 0.22% (incl. GST)
Year 5 onwards – 0.242% (incl. GST) of the outstanding balance net of balance in offset accounts. | Must form part of a commercial transaction which includes a Commercial Loan. |
Foreign Exchange (FX)
Upfront | Trail | Notes |
20% of Bank Retail FX Margin Income | Not Applicable | Where the Retail FX margin represents the difference between the price shown to a customer and the transfer price from the Financial Markets Pricing Desk. |
Interest Rates
(Applicable to Interest rates hedging between $500,000 to a maximum of $5 million)
Upfront | Trail | Notes |
20% of Bank Net Interest Margin Income.
(Interest Rate Hedging must be part of loan settlement or within the agreed condition subsequent period post settlement) | Not Applicable | Where the Net Interest Rate Margin represents the gross customer margin adjusted for a credit provision as determined by BOQ Market Risk |
International Trade Finance
Upfront | Trail | Notes |
50% of the facility establishment fee charged and accepted by the customer, less than any admin or legal fees incurred to approve the transaction. | 0.275% (incl. GST) of the daily closed drawn trade finance loan balance, payable monthly in arrears | Applicable to limits up to a maximum of $5 million |
Non-lending Products
Product | Upfront | Condition |
Merchant Facilities | $250 per merchant facility |
|
Business Deposit Account (Minimum deposit of $500) | $75 per account opened | Minimum account balance: $500 |
Spot Trade | Referral Fee: 0.22% (Incl. GST) up to a maximum $8,250 (incl. GST) calculated on amount traded | Minimum amount per trade: $100,000 |
Notes & Definitions
Referral Fee means the fee set out in this Commission Guide and paid for loans settled.
Completion Day means:
For all facilities under which credit is provided - when facility is first drawn down
Deposit facilities - when account is first opened
Merchant facilities – when the facility is first installed
Facilities which are financial markets transactions including swaps, options and interest rate and foreign currency transactions – on issuance of a confirmation
All other facilities – when product is issued
Clawbacks
Period | % Clawback |
0 - 6 Months | 100% |
7 - 12 Months | 50% |