This Commissions Guide article relates to Pepper Money Residential loans. Articles related to other Pepper 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.
Residential Loans
Contents:
Commission Rates
Rates applicable to Prime Loan and Non-Conforming Loan applications received from 23rd May 2023
| ex GST | inc GST |
Upfront | 0.65% | 0.715% |
Trail - Years 1 and 2 | 0.15% | 0.165% |
Trail - Years 3+ | 0.18% | 0.198% |
Upfront Commission
Upfront commission payments are calculated at the time of settlement, net of offset and redraw, for each settled loan calculated at the date of commission payment.
Subsequent upfront payments are made if the customer confirms in line with responsible lending, funds have been used for a legitimate reason within 12 months post settlement. There is no minimum threshold for claim so long as funds have been used for the purpose advised during the application submission.
No upfront in respect of a loan is payable until 75% of the total loan amount is drawn down.
Trail Commission
Trail is calculated on the outstanding balance of each settled loan as at the last business day of each calendar month and payable on the 15th day of the following calendar month (or the next business day after the 15th of the month if the 15th is not a business day in Sydney.
No trail will be paid if any security in respect of the loan is enforced
Trail fee in respect of a loan will be suspended if the loan is sixty (60) days or more in arrears at any time. Once any arrears are rectified, the trail will commence again but will still not be paid for the arrears period.
If a broker, who is not the original broker who referred the loan to Pepper, introduces a variation or principal increase to a loan, all trail fees for that loan will cease to be paid to the original broker.
If a broker is terminated due to fraud, forgery or misrepresentation, the broker’s entitlement to all trailer fees ceases.
Clawbacks
Period | % Clawback |
0-12 Months | 100% |
13-18 Months | 50% |
If the principle amount outstanding under a loan is reduced to 50% or less of the loan’s original facility limit within the first 12 months of the term of the loan (whether as a result of any prepayment or otherwise), then 50% of the Upfront commission must be refunded to Pepper.