Major bank to announce ramped trail commissions

CBA yesterday announced that from 1 January 2015 it will implement a standard commission structure which will include first-year trail of 0.15 per cent on all new settlements.

The bank is currently in discussions with broker groups on a second commission plan offering to increase trail payments in subsequent years, which it says may be suitable for some brokers.

Full details of the new offer will be announced once a deal is struck between CBA and mortgage aggregators.

Meanwhile, the lender will pay an extra 10-basis point upfront commission on loans settled between October 1 and December 31 this year.

“We are very excited to reward brokers for their efforts and loyalty to the Commonwealth Bank,” CBA executive general manager retail products and third party banking Lyn Cobley said.

“We recognise mortgage brokers are an important part of the bank’s home loan distribution strategy and they assist in meeting our customers’ financial needs,” Ms Cobley continued.

“We are pleased to support this channel so we can continue to help more Australians buy their own home than any other bank,” she said.

The news comes after NAB announced the reintroduction of first-year trail earlier in the year.