Bankwest amends broker remuneration structure

A non-major bank has unveiled a number of changes to its broker remuneration structure, effective for settlements from 1 January 2021.

Come the new year, Bankwest will be: 

• removing the clawback at six months based upon net of offset position
• assessing upfront payment at day 14
• changing upfront commission rate from 0.7% to 0.65%, excluding GST
• moving from a 6-month review to a 12-month review, with no clawback if the net of offset position changes
• adhering to a tiered model, whereby clawback reduces for each month the loan is open for during the first 18 months

According to Ian Rakhit, Bankwest general manager of third party, the updated structure is “fair and reasonable” as it takes into account both the efforts of the broker and the costs to the bank.

He also said the changes “align to the wider market”.

“Bankwest remains committed to our own strategy of becoming the ‘Best Broker Bank’ in Australia, delivering market leading technology and service to brokers,” Rakhit said.

“[We] recognise the critical role brokers play and we continue to make significant investment in the channel.”

The service Bankwest provides to brokers was recently celebrated at the 2020 Australian Mortgage Awards, where the group was named winner of the Best Loan Services Team and Best Digital Strategy.

“We will continue to work closely with brokers to deliver brilliant customer experiences every day and to improve the financial wellbeing of our customers and communities,” Rakhit finished.