ME Bank Commercial

ME bank took up an exciting initiative with launching a national TV campaign as part of their regime in supporting mortgage brokers and their partners. Details are as follows:

  • The initiative was carried out to launch on the 17th of May - Sunday night.
  • It is a national campaign which ran in metro (Melbourne, Sydney, Brisbane, Adelaide and Perth) and regional (NNSW, SNSW, Regional VIC and Tas) markets.
  • It will further be supported by Catch up TV and YouTube advertising.
  • Expected reach was estimated to be over 4.5 million of 25-29-year old's.
  • Media value of the campaign was expected to be $2.3 million.
  • The 30-second broker logo ads will run for two weeks on free to air TV and the 30-second TCV is focused on home loan brokers specifically.

Insurance Update - Vero

Vero is making changes to their NSW Emergency Services Levy. Please see details below:

Change Effective Dates:

  • Motor Insurance: Sunday, 31 May 2020
  • Home Insurance: Wednesday, 10 June 2020

To ensure that ESL obligations are met, rates for Vero Home and Motor products have been adjusted recently.

These changes are reflected below

  • Motor Insurance (effective 31 May 2020)
    • Existing Rate: 0.00%
    • New Rate: 2%
  • Home Insurance (effective 10 June 2020)
    • Existing Rate: 14.5%
    • New Rate: 18.5%

*WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Product Changes - Prospa

Prospa will be making important product changes to their standard Line of Credit product and applicable Commission Rates, which will be effective from the 15th of June, 2020.

Please note that these product variations only relate to the standard Line of Credit and do not affect the Back to Business Line of Credit product, which is offered as part of the Government's Coronavirus SME Guarantee Scheme.

Standard Line of Credit product changes, effective from 15 June 2020

From the aforementioned date, the following will apply to all 'new' Line of Credit facilities:

  • There will be New Commission Rates for partners as set out in this updated Commission Schedule (dated 15 June 2020)
  • The Line Activation Fee will be removed
  • An Origination Fee will be introduced (this will be set at $0 for launch)
  • The $25 Monthly Subscription Fee will be replaced with a Weekly Service Fee of 2.4%p.a. of the approved Facility Limit (charged weekly across the term)
  • The payment plan option will be increased from 36-weeks to 52-weeks at the end of the term allowing borrowers to payout the closing balance in full
  • The first drawdown within 28-days rule will be removed
  • To understand the above changes in more detail, please refer to Prospa's Handy Reference Guide.

Please see some worked examples below:

  • These changes will only apply to borrowers that take out a 'new' Line of Credit on and from 15 June 2020
  • All existing Line of Credit customers will remain in current settings until the end of their current term
  • Prospa will be honouring all commissions payable on existing current Line of Credit contracts
  • These revised product and commission settings do not apply to Prospa's Back to Business Line of Credit product

*WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Annual Broker Survey

MPA's 10th annual Brokers on Aggregators survey is ongoing to reveal the top-performing aggregators and giving brokers a clear view of how their aggregator compares to the competition.

The annual survey covers key service areas including BDM support, communication with broker and quality of the lending panel, providing useful insight into what brokers value most in their aggregator.

Brokers across the country are invited to rate their aggregators and provide their feedback on how aggregators can help them considering the changes to RG209 and the introduction of the Best Interest Duty, as well as the challenges of COVID-19.

As an added incentive, all respondents will be entered into a random draw to win a $150 gift card for Jimmy Brings - a premium delivery service for wine, beer & spirits.

The Brokers on Aggregators 2020 report will be published in issue 20.07 of MPA magazine, out in July.

Take the survey here.

Source: MPA

MyConnect Updates

MyConnect continues to evolve its service partnerships and offering, to help provide you and your clients the best possible solutions.

They have recently partnered with the following providers, further enhancing their service and value proposition.

  • Momentum- 100% Aussie owned & operated gas & electricity providers. No confusing discounts or exit fees, just great energy rates
  • Dodo- providing products such as unlimited broadband internet, NBN plans, mobile plans, home phone plans
  • iPrimus- The Most Flexible Internet You Can Get! Unlimited NBN and ADSL broadband, home phone
  • MyMoovers- Highly rated Removalist service covering NSW, QLD, WA, VIC, SA, ACT and regional towns

To learn more about the mentioned services, integrated through Vownet please refer to the attached presentation.

Vow Financial Broker Presentation