This Commissions Guide article relates to Better Choice Residential loans. Articles related to other Better Choice 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
Product | ex GST | inc GST |
Upfront - Classic, Gold, Options | 0.6% | 0.66% |
Upfront - Platinum, Assist, Reset, Alternate | 0.7% | 0.77% |
Trail - Classic | 0.1% | 0.11% |
Trail - Gold, Options, Platinum, Assist, Reset, Alternate | 0.15% | 0.165% |
Upfront Commission
Classic Loan Products
Upfront is based on the draw down amount at the end of the month that the loan settled (minimum of $400).
Any loan increase (same account number) will trigger a flat commission of $250 x Introducer Upfront Rate.
Better Choice undertakes a monthly net loan balance review for the first 12 months of the loan. When the net balance of a facility has increased by at least $20,000 between monthly reviews, they will pay any further upfront commission if the loan balance has increased above the net loan balance, they have previously paid upfront commission on. Upfront commission on credit increases will move to a percentage-based payment (same as upfront commission) on the net increase to the loan.
Any variation commission payment will form part of any part of any commission clawback that becomes payable should the loan close within the Clawback period
Assist Loan Products
Upfront is based on draw down amount, net of offset and redraw, on the day of settlement.
Advance Loan Products
Upfront is based on draw down amount five (5) days after settlement date. Subsequent upfront commission paid up to 12 months, for amounts greater than $20,000 up to maximum loan limit.
Platinum Loan Products
Upfront commission is paid on funds utilized (loan amount less offset and redraw).
Gold Loan Products
Upfront commission will be based on draw down amount at the end of the month that the loan settled.
Clawbacks
Period | % Clawback |
0-12 Months | 100% |
13-18 Months | 50% |
For Classic Loan Product only, any variation commission payment will form part of any commission clawback that becomes payable should the loan close within the clawback period.