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Suncorp confirmed today that it will introduce a new broker commission structure designed to reward "persistent, quality advised-based business".
David Foster, Suncorp group executive of retail banking, told Mortgage Business this morning that the changes followed weeks of broker consultation.
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Under the new structure standard upfront commissions will be reduced from 0.65 per cent to 0.60 per cent.
Trail commissions will also change to zero for the first year, 0.20 per cent for the second and third years, and 0.25 per cent from the fourth year on. This compares to the current flat rate of 0.30 per cent.
Brokers will also be given some flexibility to decide how they earn their commissions. They can choose higher upfront and lower trailing commissions, or lower upfront and higher trailing commissions.
“The new commission structure reflects the reality of the current market and its impact on mortgage profitability,” Mr Foster said.
“We value our relationship with brokers and we know they understand that market economics have driven this change.”
Published: 11-06-08
