What is the commission dial-down policy?
The commission dial-down policy is a structured option that allows for an adjustment to the loan interest rate in exchange for a reduction in the upfront commission paid to the broker.
The specific guideline is:
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For every 1% reduction in the upfront commission, the loan's interest rate can be reduced by 1%.
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The maximum allowable reduction is capped at 2% to both the commission and the interest rate.
Example:
By agreeing to a 2% reduction in upfront commission, you can secure a corresponding 2% reduction in the loan's interest rate for your client. A 1% commission reduction would result in a 1% interest rate reduction.