(5 May 2008 – Australia) St George bank has announced a change in commission structure to brokers which will see cross sell and cost cutting based incentives.St George has stated that the reason for the change is due to higher funding costs across the market and the bank has therefore endeavoured to develop a model which is mutually sustainable to both the Bank and its broker partners.
The intent is to better reflect the value of the business introduced to the Bank. The upfront commission paid will be between 0.70 percent and 0.50 percent, and the trail commission will be between 0.25 percent pa and 0.15 percent pa.
Full commissions go to brokers that meet the four specific goals laid out by St George.
Brokers must lodge home loan applications electronically as well as assist with cross-selling non home loan products during the life of the loan.
They must also meet or exceed an agreed percentage of home loan applications that convert to settlements, and meet or exceed an agreed home loan book run-off rate.
Acting group executive Retail Business, George Beatty said that driving the usage of electronic lodgement will assist customers in getting a faster decision on their home loan applications.
The change in commissions paid to brokers will take effect from 1 June 2008.