Sovereign changes commissions on home loans

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.

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