What about broker commissions?

What about broker commissions?

What about broker commissions? Commission details were somewhat murky following National Bank’s announcement that it was closing its broker division, but we now have clarification.

Rumours came in following National Bank’s exit from the channel that it would not honour broker commissions for deals that close after January 20. However, the company has assured brokers that they will be compensated for those files.

“We will be paying brokers the sales commission and volume bonus for all deals funded after January 20,” W. Mark Squire, assistant vice president at National Bank of Canada, told MortgageBrokerNews.ca.

That includes volume bonuses, according to Squire.

In a communication to brokers, sent Monday and shared with MortgageBrokerNews.ca, the bank will no longer accept broker submissions starting Friday, December 9.

Deals with conditions not satisfied by December 16 will be cancelled, and the last funding date for applications submitted after December 1 will be January 20.

This follow-up announcement was made following broker feedback questioning the status of commissions for deals completed after the January 20 cut-off date.

National Bank announced Friday that it will no longer offer its mortgages through the broker channel.

That move leaves just TD Bank and Scotia as the sole big bank participants in the channel.

However, National also announced it would still fund mortgages through Paradigm Quest and Merix.

“We’re still committed to the broker market and to the broker channel,” Squire said at the time. “It’s just that we’re going to do our business a bit differently through a third-party model, specifically with Paradigm Quest and the MERIX Financial brand.”