This Commissions Guide article relates to RedZed Residential and Commercial 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 | 0.7% | 0.77% |
Trail | 0.15% | 0.165% |
Upfront Commission
Upfront is calculated on the original drawdown amount exclusive of fees for both residential and commercial loans as described in the current quick lending guide.
For Commercial mortgages only, a maximum of 0.33% (inclusive of GST) can be added to the RedZed Application Fee to achieve an equivalent of an increase to the Upfront Commission. Calculation is based on the original loan drawdown amount, exclusive of any fee capitalisation.
Trail Commission
Trail is calculated and paid monthly for both residential and commercial loans as described in the current quick lending guide and paid monthly on the outstanding balance at the end of the month, exclusive of fees.
Trail is not be paid in respect of loans during any default (default period). Once any default is rectified, payment of trail will re-commence but will not be payable for the Default Period.
RedZed may cease paying trail where there is any fraud, forgery or misleading conduct by a broker.
For Commercial mortgages only, a maximum of 0.385% (inclusive of GST) can be added to the interest rate to achieve an equivalent of an increase to the trail commission.
Notes & Definitions
RedZed offers the flexibility to adjust commission in accordance with the requirements of the borrower. In these instances, on a case by case basis where it is agreed by both the broker and the lender the commission paid may be different to the standard commission.
Clawbacks
From time to time RedZed may offer loan products that provide for the repayment of commission paid by Lender in certain circumstances. Any such provision will be noted in the product specification in the quick lending guide.