This Commissions Guide article relates to ME Bank 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
Initial Upfront Commission
Upfront commission is payable at end of calendar month during which the loan was settled and is calculated on, the settled loan amount less any available credit balances that exceeds $10,000 and is held by a borrower in a linked offset and/or redraw account calculated 3 business days from the loan settlement date.
The upfront commission will be paid 13 business days of the end of the calendar month during which the loan was settled and is payable only on new loans and principal increases to existing loans (Top Ups) see further notes below.
Interim Upfront Commission
A further commission is payable 6 months from the end of the calendar month during which the loan was settled and is calculated based on a) the settled loan amount for which upfront was paid, less b) any available credit balance that exceeds $10,000 that is held by the borrower in a linked offset/redraw account calculated 3 business days from the day which is 6 months from the loan settlement date.
The interim commission will be paid within 13 business days from the date the Interim Commission is able to be calculated.
No Interim Commission will be payable if the Interim Upfront Commission calculation results in a total of zero or less.
Final Upfront Commission
A further commission is payable 12 months from end of the calendar month during which the loan was settled and is calculated based on a) the settled loan amount less any loan amount for which upfront commission and/or Interim commission was paid, less b). any available credit balances that exceeds $10,000 that I held by the customer in a linked offset and/or redraw account calculated 3 business days from the anniversary of the loan settlement date.
The Final Commission will be paid within 13 business days from the date the Final commission is able to be calculated
No Final Upfront Commission will be payable if the Final upfront commission calculation results in a total of zero or less.
Additional Upfront information
Upfront commission will be paid on a Top Up loan, but only if the Top Up amount is $50,000 or more. No Interim or Final commission will be paid on Top Up loans.
Upfront is not payable on transfer of loans to new properties.
Trail Commission
Trail commission accrues from day one of the loan.
If another mortgage broker, who is not the Connective Broker who submitted the original loan, introduces a variation or principal increase to a loan, trail commission will cease to be paid to the Connective broker who originally submitted the loan.
Trail commission on Top Up loans will be paid on the outstanding balance.
Where a borrower has an offset account, trail is calculated each month on the outstanding daily loan balance less the daily balance of available funds in the borrower’s Ultimate Offset Transaction facility.
Trail is not payable where the loan is in arrears by 60 days or more, or where the loan is in excess of their credit limit or where scheduled repayments are not being made. Once the loan has been rectified trail will begin again.
Clawbacks
Period | % Clawback |
0-12 Months | 100% |
13-18 Months | 50% |