This Commissions Guide article relates to Heritage Bank Residential loans.
Articles related to other Heritage 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
| ex GST | inc GST |
Upfront | 0.65% | 0.715% |
Trail - Years 1 and 2 | 0.15% | 0.165% |
Trail - Years 3 | 0.2% | 0.22% |
Trail - Years 4+ | 0.25% | 0.275% |
Upfront Commission
Heritage will pay upfront commission on full funded loan amount, minus the balance outstanding to the customer’s credit under an offset arrangement on the 5th calendar day after settlement of the relevant loan approved, of all approved loans funded and settled during a calendar month.
The upfront commission is payable by the 10th calendar day in the month following the month in which the relevant approved loan settles.
No upfront commission is paid on their Bridging Loan
Trail Commission
Heritage Trail commission which is a percentage of the Portfolio balance at the end of each month, minus the balance standing to the customer’s credit under an offset arrangement will be calculated on the last day of the respective calendar month.
Trail commission is payable by the 20th calendar month following the month in which the trail commission accrued.
Notes & Definitions
Expired Loan means an approved loan:
That has been terminated, cancelled, withdrawn, not accepted, rejected or lapsed without Heritage providing any credit to the Customer
Under which Heritage has not provided credit to the Customer within what Heritage considers a reasonable time after approval; or
That has been paid out, discharged or has otherwise terminated or ended.
Retail Loan means an approved loan:
That will not be applied wholly or predominantly (a) personal, domestic or household purposes; or (b) to purchase, renovate or improve property for investment purposes.
Business Loan means an approved loan:
That will not be applied wholly or predominantly (a) for personal, domestic or household purposes; or (b) to purchase, renovate or improve residential property for investment purposes.
Clawbacks
Period | % Clawback |
0 to 12 months | 100% |
13 to 18 months | 50% |
Clawback applies if an approved Loan becomes an Expired Loan during this period after Heritage first provides credit.