This Commissions Guide article relates to Citibank Residential loans.
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 Commission
Upfront commission is calculated and paid on the drawn down approved loan amount net of offset savings account determined seven (7) days after the settlement at the upfront commission rate and will be paid monthly in arrears,
Top Up commission is the amount, if any, by which (i) an amount calculated on the drawn down approved loan amount net of offset saving account determined 180 days after settlement at the upfront commission rate exceeds (ii) the upfront commission calculated seven (7) days after the settlement at the upfront commission rate and will be paid monthly in arrears,
Variations
If an approved loan is varied following an application for variation made by the customer which was referred and submitted by the broker then they will receive (i) upfront commission calculated on the amount by which the drawn down amount has increased, net of the offset savings account balance seven (7) days after the settlement of the variation and (ii) Trailing commission on the approved loan (net of loan offset savings account balance) for any remaining trail period for that approved loan.
If the Variation is referred by another broker, the broker who originally submitted the loan will not receive the upfront commission on the variation nor any trailing commission on the approved loan for any remaining trail period for the approved loan.
Trail Commission
Trail commission is calculated on the principal balance of the approved loan net of offset savings account balance on the last day of each calendar month and will be paid monthly in arrears after the month in respect of which the trailing commission was accrued.
Where a customer has an offset account as part of their mortgage product, for the purpose of calculating trailing commission payable, the principal balance will be reduced by the amount of the funds that are contained in the offset account on the day that the principal balance is determined.
Where trailing commission is payable during the month in which the mortgage product was settled, trail will be paid pro-rata on the number of days after settlement remaining in the month.
Notes & Definitions
Citi will not pay any commission for bridging loans
City will cease paying commission:
If the customer is 30 days or more days overdue in making payment of any amount, payment of trailing commission to the broker will cease and may only be reinstated when the customer’s account has no payments or charges outstanding and is brought up-to-date and remains up-to-date for 30 days.
If the customer is 30 or more days overdue in making payment of any amount twice within a 6-month period, payment of trailing commission to the broker in relation to the approved loan ceases entirely.
If a broker’s accreditation is cancelled.
Clawbacks
Period | % Clawback |
0-12 Months | 100% |
13-18 Months | 50% |