HOME loan broker Mortgage Choice said it has been told by Westpac, its funding source, of plans to cut commissions for new business.
As a result, Mortgage Choice shares shed more 26.07% or 36.5 cents to close at $1.03.
Yesterday Mortgage Choice said it had received verbal advice from Westpac “with a view to reducing the rates of commission paid for introductions for new business”.
Mortgage Choice said the date for the change was yet to be determined but the revised commission would not impact in the current financial year.
“Westpac have not indicated whether this proposed change will coincide with improvements in service.
“Given the still competitive nature of the home lending industry, it is not possible to quantify the proportion of business likely to be introduced to Westpac in future,” Mortgage Choice said.
Australian Property Journal
