How safe are my ongoing commission rebates?
 
This is an important question. We have done a number of things to safeguard your commission. 
 
Firstly, while we have contractual rights to upfront and trailing commissions, Independent Mortgage Planners does not receive your commission rebates into its accounts at any stage. 
 
Instead we direct a separate legal entity known as our 'Commission Clearing House' to pay your rebates directly into your home loan account.
 
Secondly, Independent Mortgage Planners has contractual rights that protect our ongoing entitlement to commission from the Aggregator* – even if for some reason we stopped using their services.
 
 
*   Aggregator definition & considerations 
 
Very rarely (especially in the case of the larger Banks) does a Broker have any contractual rights directly with the Lender. This is principally a matter of scale and the fact that major Lenders will not hold what are known as Head Agreements with any entity that cannot deliver hundreds of millions of dollars in loans to each Lender every year.
 
Therefore most Head Agreements are held by organisations known as Aggregators. These entities hold the Head Agreements with the Lenders and then ‘aggregate’ the volumes of many Brokers (generally many hundreds or even thousands) in order to satisfy that Lender’s volume requirements. 
 
The Broker in turn has a contractual relationship with the Aggregator. It is this Contract that determines the Brokers rights to ongoing commission – amongst other things.
 
There is significant difference between Aggregators and the operative clauses of their Contracts. Some large Lenders also pay different commission rates to different Aggregators – normally on the basis of volume. 
 
Discussion of those differences is beyond the scope of this question. But we have carefully selected our Aggregator and the structure of our contractual relationship for the reasons given above and also because:
 
1.    The Aggregator is part of the largest Aggregation Group in Australia. This is important to ensure the highest possible commission rates and therefore rebates to you.
 
2.    The Aggregator is owned and resourced by NAB (National Australia Bank) ensuring a strong balance sheet and ongoing investment in technology - and ensuring their capacity to take legal action if necessary to protect trailing commissions.
 
3.    They are the only Aggregator in Australia that holds Agreements with Lenders requiring that Lender to pay commissions via a Trust which is separate to the Aggregator’s operating company. In the case of other Aggregators - Lenders generally have the right to cease making commission payments upon certain events happening to the Aggregator.
 
4.    We have no impediment on us accessing Lenders not represented on the Aggregators Lender panel. This safeguards against ‘product forcing’ or restrictions.