This Commissions Guide article relates to Connective Home Loans (CHL) Select Residential loans. Articles related to other CHL 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 | 0.15% | 0.165% |
Upfront
The upfront commission will be paid in the month following settlement or, in the case of construction loans, in the month after the first draw down occurs.
Upfront is calculated on the principal value of the participating loan less the offset balance as at the end of the month in which the participating loan is advanced.
A 'Variation Commission' will be paid on any increases in the balance during the 12 months after settlement as follows:
Variation Commission applies to increases in balance between the first and last day of the calendar month.
It does not take into account credit increases or interest capitalisation.
It is only applicable where the increase in the month is at least $20,000
The balance for Variation Commission purposes is the balance net of any linked offset account.
Upfront Commission on construction loans will be calculated on the approved amount.
An upfront commission will be payable in respect of advanced credit increases equal to or greater than $10,000 in any calendar month at the rate of the upfront commission applicable as at the date of the advance of the relevant credit increase.
For internal refinances upfront commission will only be paid on the (positive) difference between the balance of the loan product being refinanced and the balance of the new loan product taking into account the balance of any linked offset account.
The upfront commission on Go Between loans will be calculated on the loan contract end debt amount.
The aggregate of all upfront commission and variation commission payable to a broker in respect of a loan product will not exceed the amount of the upfront commission payable on the original loan amount of such product. (Disregarding any linked offset account balance).
No upfront commission will be payable if (1) the balance of the linked account exceeds the loan balance (2) in respect of a loan product conversion.
Trail
Trail is calculated daily, paid monthly and is calculated based on the principal outstanding of the participating loan less any offset balance.
Trail will no longer be paid for accounts in default or greater than sixty (60) days in arrears in which case payment of the ongoing trail will immediately resume once the default or sixty (60) day arrears level is rectified but will not be paid for the period of default or sixty (60) day arrears.
Trail will no longer be paid where in relation to a loan Adelaide Bank suspects on reasonable grounds that a broker is involved in any act of deceit, dishonesty, fraud, or illegal activity either directly or as an accessory. Adelaide Bank will provide evidence of those reasonable grounds on request.
Clawbacks
Period | % Clawback |
Loan is repaid repaid in first 12 months | 100% |
Any variation commission shall be included in the commissions which the bank is entitled to clawback if the loan is paid out in the first 12 months.