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The non-bank lender has expanded its clawback policy for the third-party channel.
Non-bank lender Mortgage Ezy has announced it has abolished clawbacks on the majority of its offerings – 28 products – which account for around 80 per cent of its total products.
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The lender had previously announced the removal of clawbacks on all products under the lender’s Ezy Program, effective from 1 April 2023.
Under the latest expansion, brokers now have access to a suite of 28 ‘No Clawback’ solutions from Mortgage Ezy, including prime loans, alt doc and lo doc loans, expat loans, self-managed super fund loans and non-resident loans.
The decision has been driven by the company’s commitment to broker empowerment and equipping them with the tools necessary to thrive in the ever-evolving mortgage market, the chief executive of Mortgage Ezy, Peter James, said.
He added that the move would ensure that brokers have the flexibility and options to serve their clients effectively without the risks of getting clawed back.
“With over 22 years of supporting brokers, we understand the challenges they face, and we are resolute in our mission to end modern-day broker slavery,” Mr James said.
“Our innovative solutions and cutting-edge technology enable brokers to better serve their clients, achieve their goals, and ultimately secure a brighter future.”
The removal of clawbacks is building momentum, with several lenders and mortgage managers announcing changes to clawbacks recently.
The Commonwealth Bank of Australia (CBA) confirmed changes to its clawback policy would take effect from 1 October 2023.
Under the new policy, staged clawbacks will be implemented for all new applications submitted from that date onwards.
Previously, CBA would claw back 100 per cent of a broker’s upfront commissions if the client refinanced their loan away from the bank within 12 months from the date of settlement.
With the updated policy, the first-year clawback will remain unchanged, with brokers earning 50 per cent of the upfront commission after one year. The remaining 50 per cent will be paid out gradually over the second year, with the clawback percentage reducing every month until month 24.
Pepper Money announced earlier this year that it had removed clawbacks for its commercial mortgage lender products and mortgage manager Rate Money updated one of its home loan product suites earlier this month so it has no fees for borrowers (with no application fee, valuation fee, or risk fee) and no clawbacks for brokers.
[Related: Rate Money removes clawback on mortgage line]
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