NAB has followed the lead of its major bank competitors by reducing the commissions it pays to brokers for home loans. Instead of 0.65 per cent in up-front commission, the bank will now give brokers who do not meet quality criteria, or have a high proportion of approved loans to settle, 0.5 per cent. Trailing commission in the early years of a loan will be reduced from the current 0.25 per cent in an effort to encourage brokers to form longer lasting relationships with their clients. JPMorgan estimates that more than 40 per cent of all home loans are sourced through brokers.
