This Commissions Guide article relates to People's Choice 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% |
Upfront (HomeBuild Access Loans only) | 0.41% | 0.45% |
Trail - Year 1 | 0.15% | 0.165% |
Trail - Years 2+ | 0.25% | 0.275% |
Upfront Commission
Initial Upfront commission is based on the amount of credit funded less the balance of each related offset account which the relevant Member may have with PCCU on the 8th day of the month following settlement (Preliminary assessment date).
Subsequent Upfront commission may be payable to the broker based on the balance 6 months after the relevant preliminary assessment date (Final assessment Date).
No upfront is payable on the portion of a HomeBuild Access Loan that is funded by the Northern Territory Government
No upfront is payable onany introduced loan to the extent it refinances or repays another loan advanced or made available by PCCU to the relevant client or a person associated with client.
Trail Commission
No trailing commission is paid on:
the portion of a HomeBuild Access Loan that is funded by the Northern Territory Government.
any introduced loan to the extent it refinances or repays another loan advanced or made available by PCCU to the relevant client or a person associated with client.
introduced loans with an introductory rate during the introductory period.
introduced loans which are continuing credit contracts (e.g., Line of Credit, Overdrafts etc.)
introduced loans for any month which the borrower(s) has/have failed to make a repayment that is due under the relevant credit contract for a period of 60 days or more (at any time during the month the borrower was 60 days or more in arrears)
introduced loan in relation to which relevant borrower, guarantor or surety, or mortgagor or other security provider is in default otherwise than as a result of failing to make a payment when due.
introduced loan that have a non-accrual status
any new loan or credit facility type that PCCU introduce and advise is an approved product in which they notify brokers no trailing commission is payable.
the borrower repays the introduced loan in full.
Notes & Definitions
Where there is an increase in lending in relation to an introduced loan:
If the application for increased lending is introduced by a broker, they will be entitled to upfront commission on the amount of the increase and trailing commission calculated by reference to the loan balance has increased; and
If the application for increased lending is not introduced by a broker (for example, if the client applies directly to PCCU) the broker will not be entitled to any further upfront commission in relation to the increase. However, brokers entitlement to trailing commission in relation to the introduced loan will be calculated on the loan balance at the end of the relevant month as increased.
This applies regardless of whether the increase is documented as a variation to the existing credit contract or as a new credit contract.
Any other variations to an introduced loan (for example, product switches or principal reductions) will not be affect the brokers entitlement to trailing commission, except to the extent that the variation may affect the outstanding balance of introduced loan.
Clawbacks
Period | % Clawback |
0-12 Months | 100% |
13-24 Months | 50% |
A clawback of 100% of the upfront and trailing commission paid to the broker will apply where PCCU are unable to recover any of the amount advanced due to fraud (whether or not the broker knew about the fraudulent conduct).