Commissions Guide: BOQ Commercial

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.

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