Shop around
Upfront commission payments to mortgage brokers will be calculated on the net loan balance five calendar days after the date of the settlement. That is, the approved loan amount less any funds held in offset, or available for redraw by the borrower.
“Suncorp believes most customers have drawn down their funds within five days,” a bank spokesman said.
“We will use this timeframe to pass to enable broker remuneration to be calculated at the most appropriate time.”
The commission changes follow the Australian Securities and Investments Commission into broker remuneration and recommendations made by the Combined Industry Forum.
There is no change to the existing payment of additional loans, trail commission or commercial commissions for construction loans.
Borrowers are being encouraged to shop around for the best offers as lenders step up competition in a bid to boost flagging loan volumes.
For example, Bank of Melbourne is offering a headline rate of 3.99 per cent and $200 cash back for refinance and $1500 cash back for new applications.
AMP is waiving its standard establishment fee of $350 and settlement fee of $250.
Community First Credit Union is offering a headline rate of 3.59 per cent and $500 cash back for new eligible loans.
Virgin Money, which recently increased rates, is offering extra Velocity Points at settlement, every month and every three years of lending term.
Others, such as First Option Bank, have a headline rate of 3.54 per cent and $900 cash back upon settlement.
from Just News Viral http://bit.ly/2sGvb8m
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