Adelaide Bank's Changes to Commissions
Effective for applications submitted from 1 August 2020, Adelaide Bank will be making changes to the way upfront commissions are calculated.
What are the changes?
The upfront commission is initially paid based on the net loan balance as of the last calendar day of the month the loan settled, with a minimum upfront commission payment of $400.
- Effective 1 August 2020, the $400 minimum payment will be removed. Instead, a monthly net loan balance review for the first 12 months of the loan will be placed. This means when the net balance of a facility has increased by at least $20,000 between monthly reviews, the bank will pay any further upfront commission (referred to as variation commission).
- Upfront commission on credit increases will also move from a flat payment of $250 to a percentage-based payment (same as upfront commission) on the net increase to the loan.
Please note; there will be no changes to the upfront commission calculation methods on Construction or Go-Between/Bridging loans. Any variation commission payment will form part of any commission clawback that becomes payable should the loan close within the clawback period.