This Commissions Guide article relates to Bankwest Residential Loans. Articles related to other Bankwest 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 - Years 1-3 | 0.15% | 0.165% |
Trail - Years 4 + | 0.2% | 0.22% |
Upfront
For loans that settle from 01 January 2021 – In respect of each Financial Services (but not a Construction Loan) Bankwest will pay upfront commission a sum calculated and payable 14 calendar days after settlement (Day 14) equal to 0.715% of the amount utilised by the borrower in relation to such Financial Services minus the balance in any Linked Offset Account as at close of business on Day 14.
For Construction Loans that settle from 01 January 2021 – Bankwest will pay an upfront commission calculated and payable 14 calendar days after settlement (Day 14) equal to 0.715% of the approved limit of the loan subject to bank receiving the nominated application fee.
For Loans that settle from 01 January 2021 – Twelve Month Review – Where the loan amount disbursed is less than or equal to $3 million, Bankwest will review each eligible home loan approximately 12 months after the date that any part of the amount of credit or maximum amount of credit has been advanced (settlement date). If as at the date which is 12 months after the settlement date the highest average monthly balance of the relevant Eligible Home Loan less the average daily balance of any Linked Offset Account over this 12 month period has increased by $20,000 the commission payable will be adjusted to an amount equal to 0.715% of the new highest average monthly balance of the home loan less new average balance of any Linked Offset Account.
Where the new highest average monthly balance less the average daily balance of any linked offset account has increased by $20,000 or more, Bankwest will pay the broker an amount equal to the difference between the original commission paid and current commission.
Where any individual Financial Service (but not a consumer bridging loan) exceeds $3 million, the amount of upfront commission payable will be subject to prior negotiation between the bank and the broker and in the absence of agreement on the amount no commission is payable.
Trail
Trail will be calculated and payable monthly in arrears on the average balance of each Financial Service minus the average balance in any linked offset facilities (But not a consumer Bridging Loan) during the preceding month.
Where any individual Financial Service (but not a consumer bridging loan) exceeds $3 million, the amount of trail commission payable will be subject to prior negotiation between the bank and the broker and in the absence of agreement on the amount no commission is payable.
Notes & Definitions
Linked Offset Account – means a transaction account linked to the home loan which provides an interest off set facility against the home loan.
Construction Loan – means a retail loan where the purpose of that loan has been selected as Construction during the application process and the customer has provided a fixed price building contract.
Eligible Loan – is a Financial Service which is not a Construction Loan or a Consumer Bridging Loan where the amount settled and disbursed is less than or equal to $3 million
Clawbacks
If the bank pays the broker any commission in relation to any Financial Service and the loan or facility in respect of which that commission was paid is repaid in full within 18 months of it having been drawn down, the broker must refund to the bank an amount equal to the commission paid to the broker less “X” where “X” is determined as follows: X = months account has run divided by 18 multiplied by commission paid
The bank may, at its discretion, pay to the broker a commission in respect of applications accepted by the bank for equity lines, based on the credit limit of an equity line even though no funds have been disbursed from the equity line or drawn down by the customer.
If after 12 months of the bank making an Equity line or other similar facility available for draw down by a customer, the customer has not drawn down on that Equity line or has drawn less than 75% of the credit limit of that Equity line, then the bank is entitled to seek from the broker, within 60 days of expiration of that 12-month period, a refund of the commission paid by the bank in respect of the application for that Equity line.
If an Equity line is refinanced before the expiration of the 12-month period and the customer does not draw down on that Equity line or has drawn less than 75% of the credit limit of that equity line following the refinancing, the broker must still refund the commission it has received from the bank during the 12-month period in respect of the application for that Equity line, notwithstanding that the Equity line has been refinanced
The refund shall be calculated as follows: R = C – (C x D/L) Where
R = refund of commission the bank may seek
C = commission paid in respect of the Equity line application
D = maximum amount drawn down on the Equity line at any time during the 12-month period commencing on the date on which the bank made the Equity line available for draw down by the customer; and
L = credit limit for the Equity line
Other Information and Conditions
Bankwest shall have no obligation to pay commission:
No commission is payable in relation to any consumer Bridging loan.
In respect of any Financial Service in respect of which the Bankwest customer has been in default of the terms and conditions of that Financial Service for 60 days or more.
In respect of any Financial Service which is a deposit product or an overdraft product
If the bank approves an application for Financial Services directly from any person the bank is not required to pay commission to the broker in relation to the Financial Service
For existing loans with Bankwest:
Where a Financial Service (but not a Consumer Bridging Loan) is refinanced (but only where the limit is increased) the Bank will pay the broker an upfront commission calculated and payable monthly in arrears on the amount of the increase at a rate specified
If the broker submits an application to refinance a financial service (but not a Consumer Bridging Loan) originated by a person other than the broker (outgoing broker), any trail commission being paid by the bank in relation to the relevant Financial Service will be transferred to the broker with effect on and from the first day of the month in which the refinancing occurs and will be paid on the full limit of the loan.
If the bank directly refinances a Financial Service (but not a consumer Bridging Loan) the bank will continue to pay the broker trail commission on the portion of the loan introduced by the broker
If the broker is an outgoing broker, the broker’s entitlement to commission in respect of the Financial Service (but not a Consumer Bridging Loan) is terminated with effect on and from the first day of the month in which the Refinancing occurs.
Should a new limit be established as a result of combining loans/limits or splitting loan/limits etc. the trailing commission on the restructured funds will continue on the existing trail as at the time of the previous loan closing This will only apply where the aggregator (broker) is the same on both the original loan and the new loan with restructured funds; and upfront commission will continue to be paid only on the new funds.
Suspension of Commission
The bank may stop paying commission in respect of all applications submitted by a broker if the bank has reasonable grounds to believe that the broker has:
Acted fraudulently or unconscionably.
Made misleading or deceptive statements.
Withheld material information from the bank or client.
Failed to disclose any commissions payable in connection with the Financial Services to the client, or
Ceased to hold any authorisation.