NBNZ latest to address broker commissions

National Bank has become the latest major lender to warn mortgage brokers that it wants to cut their commission payments.

Monday, May 21st 2007, 5:19AM

by Maria Scott

Last month sister bank ANZ warned brokers that it wanted to cut commission from 1 June to 45 basis points from an average of about 0.6%. It also proposed an extension to its clawback period, for loans redeemed early, from 12 months to 18 months and to introduce fees for loans submitted and approved but not drawn down.

A large broker group told Good Returns that National Bank had now written to a number of firms giving notice that it wanted to cut commission. No figures were put on the proposal.

National Bank confirmed that it was in discussions but said no decisions had been reached.

A spokesman said: “We've appreciated the constructive feedback we have received and we're now focused on concluding the process with the individual brokers.”

ASB also expects to open discussions with brokers on commissions over the next two months.

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NBNZ latest to address broker commissions

National Bank has become the latest major lender to warn mortgage brokers that it wants to cut their commission payments.

Monday, May 21st 2007, 5:19AM

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