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Industry super fund-owned bank ME has announced it will increase its upfront commission for brokers.
This will take the bank’s upfront commission from 0.60 per cent to 0.65 per cent excluding GST, but it will continue to pay GST on this amount.
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Lino Pelaccia, ME’s general manager of broker sales, said the increase will apply to all settlements that occur on or after 1 July 2015.
“That means a higher upfront commission can apply to applications brokers currently have in our pipeline,” he said.
Mr Pelaccia said the new upfront commission will apply to top-ups of $50,000 and over.
“ME will continue to maintain a commission structure commensurate with our growth plans, recognising the vital role brokers play in the promotion and distribution of our home loan products,” he said.
ME’s commission increase is the first from a lender reported by The Adviser in two months.
Heritage Bank announced in April it would increase its upfront commission by 10 basis points to 0.65 per cent, while Homeloans announced in the same month it would also increase its upfront commission by 10 basis points to 0.70 per cent.
ME reported $3.8 billion of home loan settlements for the 12 months to 30 June 2014, marking an 18.7 increase on the previous year.
The bank’s third-party settlements jumped 143 per cent to a record $1.2 billion during the same period, while its number of accredited brokers grew 65.9 per cent to 4,800.
[Related: Bank changes name, unveils new products]
