This Commissions Guide article relates to Connective Home Loans (CHL) Advance Residential and Commercial 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 |
Residential Full Doc and Lo Doc Loans |
|
|
Upfront | 0.6% | 0.715% |
Trail | 0.2% | 0.22% |
Residential SMSF Loans |
|
|
Upfront | 0.6% | 0.66% |
Trail | 0.2% | 0.22% |
Upfront
Brokers may, at their discretion, elect to take up to1% of the approved loan amount in an upfront payment. This will be incorporated into the Establishment Fee described in the confirmation of formal finance approval and subsequent letter of offer and paid to the broker post settlement.
Upfront will be payable on or before the last day of the month following the drawdown of the loan.
Upfront commission payment will be paid based on the total outstanding loan balance (net of off set) at calendar day 10 of settlement.
Additional payment will be made on the difference between the end of month total outstanding loan balance and the last highest total outstanding loan balance paid if they are higher than $50K after the 12th month anniversary
Introducer Fees
Brokers may, at their discretion., elect to take up to 0.50% of the approved loan amount in introducer fees. This will be incorporated into the borrower interest margin described in the letter of offer and paid to the Connective on a monthly basis post settlement.
Introducer fees will be paid for the life of the loan only while the loan is not in arrears or default. Where a loan falls into arrears by the equivalent of one full payment or more, introducer fees will be suspended, and will accrue, while the loan remains in arrears. Should the loan be brought fully up to date, any accrued and unpaid introducer fees will be paid to Connective.
Introducer fees will only be paid whilst the brokers Professional Indemnity Insurance remains up to date and Thinktank has been provided with a satisfactory certificate of currency.
The introducer fee will be calculated on the 8th day of each month for the previous month and is payable monthly in arrears.
Clawbacks
Residential Loans
Period | % Clawback |
Up to 9 months | 75% |
9-15 months | 50% |
15-18 months | 25% |
Commercial & SMFS Loans
No clawbacks apply to Connective Advance Commercial and SMSF facilities by Thinktank loans, except in the event that Connective Advance by Thinktank, within six (6) months of the initial settlement of a loan becomes (in its reasonable opinion) obliged to refund the Establishment Fee/Application Fee to the borrower with respect to a loan the broker shall after receipt in writing refund the Upfront payment received from Connective Advance by Thinktank with respect to the loan,