ST George Bank has followed in the foot steps of Westpac and cut commissions to mortgage brokers.
Acting group executive of retail business George Beatty said the bank is responding to higher funding costs.
“We are keen to reward brokers for value, efficiency and loyalty and we want to build partnerships with those brokers who are serious about working with us. Our objective is to ensure the longevity and quality of our relationships with our mortgage broker partners,” he added.
From June 01, upfront commission paid will be between 0.70% and 0.50% compared to a fixed rate of 70% at the moment, and the annual trail commission will be between 0.25% and 0.15%, compared to 25%.
Earlier month, Westpac cut its upfront commissions by 20% to 50% and trailing commission by 10% to 0.15% per annum.
Earlier this month investment bank UBS warned that other banks may follow Westpac in cutting upfront commissions.
“With weak Feb housing loan data surprising on the downside we have cut our approval growth forecasts, but forecast a two year market share recovery given Mortgage Choice’s higher quality loans and the potential for lenders to aggressively cut commissions to higher churn, smaller brokers,” UBS said.
Australian Property Journal
