Commission Rates

Notes & Definitions

Clawbacks

Upfront commission is based on the balance of the loan seven (7) days after the end of the month of settlement, less loan funds placed in a linked offset account and or paid in advance to the loan (calculated on Net Loan Balance).

A second calculation of Upfront commission will be made six (6) months after settlement, with an additional payment being made where the net loan balance has increased by more than $10,000.

For line of credit products upfront will be calculated on 100% of the credit facility limit.

For construction loans upfront will be calculated on the total of the amounts contracted to be drawn down within 24 months of the date of initial drawdown.

The variation or new money amount of loan variations involving principal increases or New Money Applications the settlement of which occur on or after 1st January 2019, whether or not the original settlement of the original loan the subject of the variation or new money application occurred prior to 1st January 2019, then original upfront amount paid will be clawed back and new commission on varied loan/new money amount will be paid based on the upfront commission from 1st January 2019

Newcastle will pay trail commission at the applicable rate for each available Newcastle Permanent product (with exception of any offset products) based on the Average Daily Principal Balance on loans introduced by the broker or the average daily balance on loans not originally introduced by the broker where a subsequent variation on the loan has been initiated by the broker.

Trail commission will cease if a variation to the loan is initiated by another broker where the loan was originally introduced by the broker.

Newcastle will cease paying trail when the loan is in default for such period commencing 30 days after the date on which the payment is due.

Newcastle may suspend commission to a broker where in the opinion of Newcastle Permanent, acting reasonably, the broker has forged signatures or documents or has falsified records or where the broker has failed to adequately carry out customer identification of verification procedures required in respect of a customer

Average Daily Principal Balance means the sum of balances at the close of business for each loan introduced by the broker through submission of an application which is outstanding and has not been discharged, and for each amount of new money which is outstanding and has not been discharged, and in each case where the borrower is not in default, for each day in the period, divided by the number of days in that period. This will generate the average daily principal balance for each loan. The balance includes:

Existing Borrower means any of the parties to an existing or previous (repaid within the last 3 months) loan with Newcastle Permanent

New Money means funds made available to an existing borrower in addition to the settled loan amount but for avoidance of doubt, in respect of line of credit products, includes any amount by which credit limit is increased.

Settled loan amount means: for loans other than continuing credit facilities, the Net Loan Balance. For Line of Credit Products,100% of the credit facility limit. For Construction Loans, the total of the amounts contracted to be drawn down within 24 months of the date of initial drawdown.

Net Loan Balance means the loan balance on the 7th calendar day in the month following the month in which the loan settles, less any amount repaid in advance and account balance of any related offset account.

Variation means a change in the terms and conditions applicable to a loan. This may include product switches and principal increases.