Sovereign changes commissions on home loans
Sovereign, like other lenders, has reviewed its home loan business and is making a number of changes, including a reduction in its commission levels.
Sunday, July 31st 2005, 11:22PM
Sovereign’s general manager home loans Adrienne Smith says the purpose of the research was two-fold.
“Firstly, we wanted to clearly identify what our brokers value most in their business, so we can retain or strengthen these features to better meet their needs. The second was to consult on the current issues facing the home loan market to form business decisions, which have minimum impact on brokers’ business,” Smith says.
“At a time when competitors are seriously reducing commissions, discontinuing trail commission or withdrawing from broker support altogether, Sovereign will continue with trail commission and upfront commission.”
However these will be reduced by 0.05%. Sovereign says it will also continue its upfront only commission option at a slightly lower rate of 0.75%. Sovereign’s fee free electronic banking option will remain.
Also remaining is the jumbo discount of 0.15% on all loans except on Go Low-Doc, however it is removing the legal fee contribution of $250 for customers.
Sovereign is increasing broker channel service initiatives with a greater focus on the size and dedication of its business development with brokers as well the introduction of a lending helpline.
“Sovereign understands the real value brokers contribute to customer business is in the relationship they build, and in finding the best deal possible for the customer,” Smith says.
She says Sovereign is “focusing on making significant improvements internally so our cost base is reduced and our service levels are increased.”
All changes come into effect from September 1.
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