Broker association FBAA welcomes move - but there is one trade off
ING will scrap broker commission clawback on loans discharged through a property sale, a change the Finance Brokers Association of Australia (FBAA) has welcomed as pressure builds on lenders over commission structures.
The bank confirmed that from 1 August, clawback will no longer apply where a loan settling from that date is discharged following the sale of the secured property between 12 and 18 months after settlement.
The change forms part of a broader simplification of ING's broker commission model, which will move to a flat 71.5 basis points upfront commission (including GST) across all loans regardless of loan-to-value ratio, plus 16.5 basis points trail commission for the life of the loan. The maximum loan amount eligible for upfront commission will also rise from $2 million to $5 million.
As a trade off, the four-year-plus trail commission has been reduced from 20 basis points to 15 basis points, marking a 25% reduction in trail after the four-year period. However, brokers speaking with MPA were largely satisfied with the trade off.
"While the reduction in trail commission on loans held beyond four years reducing by 25% isn't ideal, I believe it's a worthwhile trade off for a fairer clawback policy," said Money Lounge mortgage broker Maddie Walton. "Brokers invest significant time and resources into every client, and when a loan is repaid because a customer sells their property, that's completely outside of our control. Removing clawback in those circumstances provides greater certainty and recognises the value brokers have already delivered.
"While no one wants to see ongoing remuneration reduced, I'd much rather accept a lower trail on long-held loans than continue to carry the risk of being clawed back for something I don't influence. Overall, I think it's a positive change that better aligns broker remuneration with outcomes we can actually control."
Another broker was more critical: "Clawbacks are part of the commercial reality of lending. What we should be talking about is rewarding brokers who retain clients and build quality, long term loan books, not creating incentives that could, at the margin, reward shorter-term behaviour."
Clawback is the practice where a lender recovers part or all of a broker's upfront commission if a loan is repaid or refinanced within a set period after settlement, typically to offset the lender's lost interest revenue. This has been a persistent flashpoint in the broker channel, with an FBAA-commissioned survey previously finding that eight in ten brokers had been hit by clawbacks in the past year, with nearly half losing more than $10,000 as a result.
Why the timing matters
The announcement follows closely on the FBAA's submission to the federal Treasury's June 2026 consultation paper on unfair trading practices protections for small businesses, in which the association listed clawback, net-of-offset arrangements, channel conflict, referrer arrangements and broker accreditation as areas needing reform.
FBAA chief executive Leo Gagic said ING was "taking an important step in the right direction," though he stopped short of calling the change complete, saying he hoped the lender would eventually consider extending the waiver to cover the full first year, since "brokers shouldn't be penalised at all for reasons beyond their control."
Read more: The case for and against clawbacks
Gagic also pointed to ING's broader parity commitment — that loans offered directly to customers are not priced lower than those offered through the broker channel — as a positive signal for the lender-broker relationship.
"Relationships like this are not only beneficial to both brokers and lenders, but to consumers through increased competition, better service and the knowledge that they will end up with the loan that best suits their circumstances," he said.
From an aggregator’s perspective, "it is so encouraging to see a lender the size of ING recognises the realities of the work brokers undertake and move towards a fairer clawback framework", said outsource Financial chief executive Tanya Sale. "This is an example of constructive engagement between lenders/brokers/aggregators, and let’s hope it encourages continued innovation and collaboration across the industry!"
ING's response
Sergio Delvescovo (pictured), ING's national sales manager for broker, said the changes reflect feedback from the broker network about simplifying how they do business with the bank. "We're committed to being the bank for brokers. Brokers play a vital role in helping Australians achieve their property goals, and these changes reflect the feedback we've heard about making it easier to do business with ING," he said.
Delvescovo added that the clawback waiver acknowledges that a property sale is often driven by circumstances outside a broker's control. "Customers may need to sell a property for a range of reasons, including relocation, changes in family circumstances or other significant life events. In these situations, brokers have often done everything right, yet may still be subject to clawbacks," he said, adding that ING's change "doesn't punish brokers for decisions beyond their control."
Gagic has urged other lenders to follow suit, saying "every step forward that makes it fairer for brokers is a good step" and that "if other lenders do what ING has done, it's a positive start."
