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Kiwibank raises commission payments for advisers

Kiwibank is raising the commission it pays to mortgage advisers.

Thursday, December 8th 2022, 5:42PM 2 Comments

by Eric Frykberg

The bank is moving its upfront commission from 0.45% to 0.55%, however its trail commission remains unchanged at 0.15%.

This move will be welcomed by the adviser community which is doing much less business now than previously, due to the property downturn.

Figures from the Real Estate Institute from November show there was a fall of 34.7% in the number of houses sold in a year and 4.3% in just one month.

Prices have fallen as well, and the two trends have combined to pull down adviser earnings.

But the Kiwibank move is not seen in the industry as a trend towards better payments to advisers overall, nor any sort of compensation for hard times.

Nor is it seen as any significant compensation for the fact that advisers are doing more work for banks, which in turn are closing down branches and saving on their fixed costs.

Instead, the change is regarded by industry professionals as a balancing act by Kiwibank. Its upfront commission was previously lower than that of the other four big banks. This latest rise will bring it closer to the commission paid by Westpac and BNZ.

Adjusting the levels to incorporate trail commission, which not all banks pay, the figures for all five main banks will move closer together as a result of this change.

In a statement, Kiwibank general manager of home lending, Nicole Pervan, said the bank was committed to partnering with the adviser community.

“We've built a strong team to support our partnerships and to deliver quality products for our customers.

“Our aim is to continue growing this channel ….. we have increased our upfront commission from 0.45% to 0.55% on borrowing transactions settled from and including December 5.”

Tags: Kiwibank

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Comments from our readers

On 9 December 2022 at 3:00 pm orbrooks said:
How does this compare to other lenders? Is there anywhere (i.e. a site) that lists lenders and the commission rates they pay?
On 12 December 2022 at 11:07 am Good Hamish said:
Most banks are similar - they either pay .6% approx upfront and an annual trail of .2% approx or just approx .8% upfront with no trail

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Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

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