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Following a review of its clawback policy last year, major bank NAB announced a new structure, in line with changes made by other major banks in recent times.
Previously, NAB required a full 100 per cent clawback of upfront commissions if a borrower refinanced within the first year and a 50 per cent clawback if refinancing occurred between 13 and 24 months after settlement.
Under the new policy, NAB has implemented a stepped clawback commission rate for all new residential loans that refinance away from the bank.
In an update to brokers, NAB’s executive broker, distribution Adam Brown said: “The changes will fix a real pain point for brokers by improving the clawback structure and the refreshed, stepped commission rate will better align NAB’s products in market.
“These changes came into effect from 1 September 2024 and will apply to new residential loans settled after that time.”
Additionally, NAB has adjusted its trail commission structure to 0.17 per cent for the first two years, increasing to 0.22 per cent thereafter.
Other major banks have also updated their clawback policies over the past year, with Westpac reducing its clawback period to 18 months and the Commonwealth Bank of Australia (CBA) adopting a staged clawback approach after 12 months.
This update to NAB’s clawback policy came as the major bank sent out an update to brokers on 5 September, reinforcing the bank’s commitment to the third-party channel in an attempt to solidify its stance as the “bank behind the broker”.
Brown highlighted at the time: “The home loan market remains highly competitive. We recognise the vital role that brokers play in the home loan market, and we value our long-term partnerships.
“Balancing returns and growth in this dynamic market will remain important. The economic environment, including persistent inflationary pressures, is challenging for our customers and we are here to help.
“NAB continues to invest in the broker channel to make it easier for brokers and customers by simplifying and digitising the home lending experience.”
The bank’s executive further said that brokers should be on the lookout for “more exciting things to land around policy and product in the coming months”.
This follows recent scrutiny of major banks’ commitment to the third-party channel, sparked by comments from the CEOs of CBA and Westpac on broker remuneration made during a parliamentary inquiry in late August.
The changes to clawbacks came alongside several key appointments made to further support brokers, which included Anita Lindsay being named as NAB’s head of Western Australian, South Australian, and the Northern Territory commercial broker and equipment finance leadership team and Alex Wellman as a business development manager (BDM) for Central and North Queensland to enhance on-the-ground broker support.
[RELATED: NAB reinforces it’s the ‘bank behind the broker’]
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