This Commissions Guide article relates to Gateway Bank Residential loans. Articles related to other Gateway Bank 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
Upfront Commission
Rates applicable to loans settling from 1 February 2019:
| ex GST | inc GST |
Standard Home Loans Fixed and Variable, Premium Package Home Loans Fixed and Variable, Land Loan Fixed and Variable, Construction Loan and Low Rate Essentials Loan. | 0.65% | 0.715% |
Equismart (Line of Credit) | 0.45% | 0.495% |
Initial Upfront Commission will be based on the utilization of funds calculated by taking the drawn down amount, net of any funds in redraw, in advance or an offset account. The calculation will occur on the last day of the calendar month when the loan settles.
Subsequent Upfront Commission: on the 12-month anniversary from initial upfront commission a subsequent upfront commission will be paid on the difference in the amount of unutilised funds between the initial and the subsequent calculation, but only if the difference is greater than $20,000.
For Construction loans, upfront will be payable in two instalments
Instalment 1, calculated as a percentage of the initial principal amount advanced during the preceding calendar month e.g. initial drawing to facilitate purchase of land
Instalment 2, calculated as a percentage of the balance of the total contracted loan amount after deduction of the initial principal amount advanced, and payable should the second loan drawing i.e. under an approved fixed price building contract, be completed in the preceding calendar month
Where a loan contract providing Progressive advance arrangements (excluding Construction Loans) has been agreed by Gateway, Upfront will be calculated as a percentage of the principal amounts advanced on each occasion until the sum of amounts advanced equals the contracted loan amount or as otherwise determined by Gateway at its sole discretion.
Trail Commission
| ex GST | inc GST |
Standard Home Loans Fixed and Variable, Premium Package Home Loans Fixed and Variable, Land Loan Fixed and Variable, Construction Loan and Low Rate Essentials Loan. | 0.15% | 0.165% |
Equismart (Line of Credit) | 0.2% | 0.22% |
Trail commission is calculated on average daily outstanding principal balance of the loan during the preceding month.
Trail Commission will be suspended with respect to any loan that is in default commencing 60 days after the date on which it became in default until the date when the loan ceases be in default.
If loan is in default by more than 60 days on 3 or more occasions, no further trail commission will be payable in respect of the loan, even if the loan ceases to be in default.
Where 100% loan offset arrangements apply, trail will be calculated on the net average outstanding principal balance of the loan during the preceding month (i.e. loan balance minus offset account balance)
Clawbacks
Period | % Clawback |
Loan is repaid on or before 91 days from funding date | 100% |
Loan is repaid on or after 91 days and on or before 730 days from funding date | 50% |
Additional advances to an existing loan, will vary the commencement date for the clawback period to the date of the most recent advance.
Trail Commission is not subject to clawback