This Commissions Guide article relates to P&N 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
Rates applicable from 1st September 2023
| ex GST | inc GST |
Upfront - LVR ≤ 95% | 0.65% | 0.715% |
Upfront - LVR > 95% | nil | nil |
Trail | 0.15% | 0.165% |
Rates applicable prior to 1st September 2023
| ex GST | inc GST |
Upfront - LVR ≤ 80% | 0.65% | 0.715% |
Upfront - LVR > 80% & ≤ 95% | 0.50% | 0.55% |
Upfront - LVR > 95% | nil | nil |
Trail | 0.15% | 0.165% |
Upfront Commission
If during the term P&N bank provides an additional loan or services to a borrower who is a member, they will not be liable to pay the broker commission.
If the broker disputes any amount of commission received the broker must raise a query with Connective (who will refer to P&N Bank) within 12 months of payment of the commission otherwise the broker waives their right with respect to that commission query
Upfront commission is paid in respect of each approved loan that proceeds to completion where the loan amount is at least $50,000.
For each approved loan that is a bridging loan, an upfront commission payment of $300 applies
Top Up Commission
Top Up Commission is paid in respect of each qualifying loan (excluding Bridging loans) post a 365 day review where the Top Up Amount is $5,000 or more.
Top Up Commission is calculated by multiplying the upfront commission rate with the Top Up Amount. For this purpose, the Top Up Amount is the difference between a) the funded loan amount as at the Upfront Commission Assessment Date; and b) the funded loan amount as at the date that is 365 days after the first day on which an amount of credit is drawn down by the borrower under the contract.
Trail Commission
Trail payments will be discounted by the total funds held in offset against each qualifying loan which will be calculated at the end of each month.
The trail in respect of a loan will cease to be payable if the Loan is discharged in full and/or if any security in respect of the loan is enforced.
If a settled loan falls into arrears trail payment will cease until the loan returns to a position of good standing.
For loans paid out and closed before the last day of the month, the applicable yearly rate will be paid on the outstanding loan balance minus any consolidated balance calculated on the day of loan closure
Clawbacks
Clawbacks applicable to loans from 1st September 2023
Period | % Clawback |
0-12 Months | 100% |
Month 13 | 50% |
Month 14 | 46% |
Month 15 | 42% |
Month 16 | 38% |
Month 17 | 34% |
Month 18 | 30% |
Month 19 | 26% |
Month 20 | 22% |
Month 21 | 18% |
Month 22 | 14% |
Month 23 | 10% |
Month 24 | 6% |
Clawbacks applicable to loans prior to 1st September 2023
Period | % Clawback |
0-12 Months | 100% |
13-24 Months | 50% |