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Indicating that competition between Australia’s lenders is still running hot, one bank has lifted its upfront commission payment.
AMP Bank announced yesterday it will pay an additional 20 basis points in upfront commission until the end of November.
According to the lender, this commission incentive applies to loan applications, including increases, submitted before 30 November 2013.
Loans must be settled by COB on Friday 31 January 2014.
The temporary increase replaces the current temporary offer of an additional 0.10 per cent upfront commission.
While the incentive is likely to impress brokers, it is unlikely to come as a surprise as many in the industry believe Australia’s lenders will continue to use commissions as a lever to generate more business.
According to a recent straw poll conducted by The Adviser, a majority (57.1 per cent) of brokers expect to see additional lender commission incentives in the future. The remaining proportion of respondents were unsure.
