Teachers Mutual Bank Limited enhances upfront commission model
1 April, 2020
Teachers Mutual Bank Limited has today announced it has changed its existing upfront commission model to provide a better deal for brokers.
Teachers Mutual Bank Limited has introduced a deferred payment that will be calculated by reviewing the loan account balance at the end of the month after the 12-month anniversary of the loan. The Bank will now pay a top-up commission on the difference between the current loan account balance (net of any offset) and the loan account balance used in the initial upfront calculation of the loan, provided that the movement is greater than or equal to $20,000.
Mark Middleton, Teachers Mutual Bank Limited’s Head of Third Party Distribution said: “We want to support our broker partners in these challenging times. We have listened to their feedback and implemented a change that we think will best serve our members and our brokers.
“This update to our upfront commission model has been made to ensure that customers obtain loans that are appropriate to their specific needs, whilst also providing brokers with recognition of an increase in the initial funds at the 12 month anniversary date.”
The change will take effect from 1 January 2020, with backdated payments for January and February. The initial upfront commission payment remains unchanged.
This announcement comes after Teachers Mutual Bank Limited announced it would continue to honour all trail payments for brokers up to 30 June in respect of their clients who have been granted financial hardship as a result of COVID-19.
PR & Corporate Affairs Specialist
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Head of Corporate Affairs
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