This Commissions Guide article relates to UBank Residential loans.
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 | 0.63% | 0.693% |
Trail | 0.15% | 0.165% |
Upfront
The Upfront commission will be paid within 1 month from Settlement Date and is based on the Amount Financed (the drawn balance net of offset) on the 5th business day of the month following settlement which need not equal the amount the Applicant (s) applied or was approved for.
For a loan increase, from the Subsequent Settlement Date if the increase to the Amount Financed (the drawn balance net of offset is greater than $50,000.00 This calculation will be based on the amount of the increase (the amount drawn) to the Amount Financed at the Subsequent Settlement Date, which need not equal the amount the Applicant (s) originally applied or was approved for.
The Upfront on construction loans will be paid within 1 month from Settlement Date and will be calculated based on the total amount of credit approved.
For Construction loan increases the Upfront will be paid within 1 month from each Subsequent Settlement Date if the increase to the Amount Financed is greater than $50,000. This will be based on the amount of the increase (the amount drawn) to the amount financed at the Subsequent Settlement Date, which need not equal the amount the Applicant (s) originally applied or was approved for.
Trail
Trail will be paid monthly based on the average loan balance during the month.
In the event any payments under a Loan following the Settlement date are 60 Days or more in arrears no trail will be payable in respect of that loan. Trail commission, if payable, will only be paid on and from that loan being returned to complying with its terms.
Trail commission will cease in respect of any loan that is misleading, fraudulent or otherwise in breach of the law.
Notes & Definitions
Settlement Date: means the date after which an approved application for a loan product is first advanced.
Subsequent Settlement Date: means the date, after which an approved application for an increase to the Amount Financed, on which all or part of that increase is advanced. For the avoidance of doubt there may be more than one Subsequent Settlement Date.
Clawbacks
Period | % Clawback |
Loan is repaid in first 12 months | 100% |
Loan is repaid over 12 months but within 24 months | 50% |
Additionally, on all uBank loan products (including construction loans and all credit increases of a ubank loan) Clawback will be payable as follows:
There is an increase to the Amount Financed, and the loan including any increase to the Amount Financed is repaid in full after 24 months of the[i] settlement date, but within 12 months of the Subsequent Settlement date, 100% of the Commission for the increase to the Amount Financed is to be repaid by the broker to ubank.
There is an increase to the Amount Financed, and the loan including any increase to the Amount Financed is repaid in full after 24 months of the settlement date, but at any time between 1 to 2 years of the Subsequent Settlement date, 50% of the Commission for the increase to the Amount Financed is to be repaid by the broker to ubank.
Where a loan application is submitted to ubank, if that Loan is misleading, fraudulent or otherwise in breach of the law then 100% of the Upfront and Trail Commission is to be repaid.
At the time the loan application was submitted to ubank if the broker did not hold an accreditation with 86 400 then 100% of the Upfront and Trail Commission is to be repaid by the broker to ubank.