CBA looks to follow Westpac’s lead

Ralph Norris has indicated that the Commonwealth Bank is currently reviewing commissions it pays to mortgage brokers. Norris said it is a "fact of life we are losing money on every loan that goes through a broker". It would appear that the CBA is likely to follow Westpac's lead and cut commission rates in the near term. "There has to be some sharing of pain, we are looking at it. It is not a case of if but when", said Norris. Westpac lowered its broker commission two weeks ago, by removing 20 basis points on upfront commissions and 10 basis points on trails.

Source: The Australian Financial Review