This Commissions Guide article relates to Pepper Commercial 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.
Contents:
Commission Rates
| ex GST | inc GST |
Upfront | 0.6% | 0.66% |
Trail | 0.2% | 0.22% |
Initial Upfront Commission
An initial fee will be calculated on the loan amount net of offset sub account or redraw balance for each settled loan. Calculated on or shortly after settlement date.
Subsequent Upfront Commission
Pepper Money Commercial will, after the first anniversary of each borrower’s settlement date (anniversary date) calculate the maximum drawn down amount net of offset sub-account and redraw balance for each borrower’s loan and either:
i) pay the broker an additional fee at the applicable upfront rate for funds drawn down from any relevant borrowers offset sub-account or redraw balance within 12 months of the settlement date, or
(ii) where the amount of the initial fee is greater than the amount payable by in respect of the maximum drawdown net of offset and redraw balance for any relevant borrowers’ loan, recover (claw back) the difference
Trail Commission
Trail is calculated based on the outstanding balance of each loan settled as at the last day of each calendar month.
Notes & Definitions
Definition - The Pepper Money Commercial Real Estate product suite includes all commercial real estate loans. Pepper Money Commercial may designate additional products it offers from time to time.
Initial Fee is the upfront fee calculated on settlement date.
Clawbacks
Note that the 'Subsequent Upfront Commission' section above provides for clawbacks in around the first anniversary of the loan in certain circumstances.
For applications submitted on or after 1st Feb 2023 there are no clawbacks applicable to if the principal amount outstanding under a Pepper Money Commercial Real Estate product loan is repaid in full within the first 18 months of the loan being settled (whether as a result of the borrower being in default under, or discharge of the loan agreement or otherwise)
For applications submitted prior to 1st Feb 2023, clawback rates are as follows:
Period | % Clawback |
0-12 Months | 100% |
13-18 Months | 50% |