Mortgages

National Bank to cut trail commissions

National Bank will be cutting its trail commissions paid to mortgage brokers from June, the bank confirmed today.

Wednesday, April 20th 2005

Its parent bank, ANZ Bank, is also reviewing its commission structure.

The move follows Westpac's decision last September to tighten its clawback conditions for loans that didn't stay on its books long, reduced trail commissions for the first five years a loan stays in force but increased trail commissions on loans which last longer than five years.

National wouldn't provide details but New Zealand Finance Holdings told the Stock Exchange that the will be increasing upfront commissions from 0.55% to 0.75% of the loan value from June 1 and will stop paying trail commissions altogether, currently 0.2% of the loan value a year.

"It's a pretty fundamental change to the business because trails were to stop churn," Mike Pero Mortgages chief executive Jeff Staniland says.

National Bank isn’t saying much on the issue.

"In August 2004, the National Bank discussed with brokers the effects of reduced interest margins on fixed interest rate loans," bank spokesman Robert Reid says.

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Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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