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MFAA Prosper : Mortgage and Finance Brief 06
if you would like to discuss the stepped Trail Commission structure or the Homeside offer in more detail please contact your naB Broker relationship Manager. What the homeside stepped trail commissions structure can offer your business Three years on from its inception and continuing to reward brokers for the longevity of their customer relationship, the Homeside stepped Trail Commission structure is a significant indicator of nAb broker’s commitment to ‘fair Value’. nAb broker’s commitment to brokers is to ‘share margin where we make margin’. ‘A strong commission structure offers you clarity as a broker – that you’re being supported by the lender over a substantial period of time’, says Mr Harper. ‘As a broker, my priority is to source the most competitive loan for my customers, i don’t want to be preoccupied with commission concerns.’ ‘nAb broker not only offers a good price but they support me over the life of my business.’ if the customer in the previous example came to you after 4 years wanting to purchase an investment property for $300,000, then the new total increased lending would earn trail commission at 30bps, stepping up to 35bps the next year. The following chart indicates the total amount of commissions that would be paid. The benefits to having customers on your books for a long period of time are well documented. As well as generating higher business values, trail revenue builds stability into your cashflow, something Mr Harper acknowledges; ‘building your book allows you to increase your residual income for a certain length of time and offers you increased financial stability to support your customers.’ ‘nAb broker offers brokers great support when maintaining a book and keeping long-term customers on board offering them the most appropriate nAb loan for them.’ Above all else Mr Harper relies heavily on the relationship with lenders through their bDMs, with trust, honesty and reliability being the most important aspects of both a client and lender relationship. ‘Just as i have a strong honest relationship with my clients, i need to have that same kind of trust with a lender. nAb broker offers me this – it’s important to have a lender who has a story to tell to your clients .’ ‘My particular client base tends to suit the Homeside Homeplus product and its offset account arrangement – a very competitive product in the marketplace. it ’s an easy product to sell and the process through to lodgement is very good.’ Benefits to customer longevity CommissionsPayable $2,000 - $1,800 - $1,600 - $1,400 - $1,200 - $1,000 - $800 - $600 - $400 - $200 - $0 - ----------- 1 2 3 4 5 6 7 8 9 10 Years other lender Homeside BroKer stats naMe: Mark Harper CoMPanY: financial Management Years BroKing: 17 settleMents Per Year: 40 highest loan settled: $1.2 million New NAB ad.indd 4 24/11/10 5:25 PM Advertorial
Mortgage and Finance Brief 05
Mortgage and Finance Brief 07