COMMISSIONS WE RECEIVE FROM OUR LICENSEE
We receive commissions from some lenders and lessors in relation to loan contracts or leases for which we act as a credit representative and provide credit assistance. The total amount of commission we may receive in relation to your loan or lease may vary depending on the lender or lessor, the term, the features, the amount of the loan or lease you ultimately choose and the amount and timing of the repayments that you make. It is important to note that this is usually paid by the bank, lender or funder with no additional payments of this type paid by you direct.
Loan Contracts such as Home Loans, Investment Property Loans and Personal Loans;
Upfront commission payable by lenders in relation to loans is calculated as a percentage of the loan amount and is generally in the range of 0.60% to 0.77% of the loan amount. This amount is usually paid after settlement of the loan. For example, the estimated commission on a loan of $500,000 may be between $3,000 and $3,850.
Trail commission payable by lenders in relation to loans is generally calculated regularly (monthly, quarterly, bi-monthly, or annually) on the outstanding loan balance and is paid in arrears. The trail commission payable by lenders is generally in the range of 0% per annum to 0.25% per annum of the outstanding loan amount. For example, trail commission received on a loan of $500,000 would be between $0.00 and $104.16 per month.
Loan Contracts such as Equipment, Car, or Asset Finance;
Upfront commission payable by lenders in relation to such loans are usually calculated as a percentage of the loan or lease amount and is generally in the range of 0% to 10.00% of the loan amount. It is usually paid after settlement of the loan. Estimated commission on a loan of $50,000 maybe between $0.00 and $5,000.
In some cases, commissions are provisional upon you maintaining the loan for a minimum period of time. This varies from lender to lender. If this minimum period is not met, the payer of the remuneration may request that all or some of the remuneration that was paid, be paid back to them. This is referred to as "clawback". In the event of "clawback", we would require reimbursement from you (with no additional charge) for the same amount that has been requested by the payer and repaid to that payer
At the time of signing this form, the lender best suited to your individual requirements may not be known, until further assessment of this information has been completed, therefore exact commission payments may be unascertainable at this time. (As different banks and Lenders pay a different commission % rate) What we can confirm is that the commission will fall within the above mentioned % parameters.
Volume Bonus Arrangements
You can request information from us about the fees that we are likely to receive, how those fees are calculated, and our reasonable estimate of the fees or commissions that will be payable.
Our broker group/aggregator has volume bonus arrangements in place with various lenders and providers. From time to time we, or our broker group, may receive a benefit, directly by way of bonus or additional commissions or indirectly by way of training, professional development days, or sponsorship, if we or our broker group write a particular volume of loans offered by those lenders.
Commission Payable By Us
We sometimes pay a commission to a third party for the introduction of credit business or business financed by the loan contract or lease. If a third party has introduced you to us or referred you to us, we may pay them a commission or a fee.
We obtain referrals from a range of sources, including real estate agents, accountants, financial planners, other clients, colleagues, and other mortgage brokers.
If your application was referred to us and you obtain finance, then we may pay a referral fee to the referring party. If we pay a fee, this should be disclosed to you by your referrer and you will be informed of any referral fees we pay as part of our final documentation
Further information about referral commissions, including our reasonable estimate of the amount of any commission payable and how it is calculated is available from us on request.