Banks' commission cuts raise alarm
ASB has told brokers it will stop paying trail commission on new home loans from July next year, making it the latest major bank to pare back long‑term commission.
The bank also confirmed it will stop offering its AIA Go Home Loan product to new customers.
ASB’s decision follows Westpac’s earlier move to scrap trail on new loans, signalling a broader shift in how banks remunerate mortgage advisers and adding to pressure on commission‑based models just as advisers are being asked to do more under evolving conduct and consumer protection settings.
The change comes as ASB signals a cautiously brighter outlook for 2026, tipping a “modest lift in the housing market from lower borrowing costs, plenty of listings, and still relatively flat prices” and forecasting the OCR to sit at 2.25% through next year before rising in 2027 – a low-rate backdrop that also tightens margins and incentives for banks.
ASB cites ‘simplification’ and consistency for mortgage advisers
Jax Mitchell, ASB general manager of wealth, insurance and partnerships, said the bank was working with AIA NZ and NZHL advice groups on changes to legacy home loan products offered by their advisers.
“This is part of our broader simplification programme of work happening across the bank designed to reduce system and operational complexity and respond more quickly to evolving customer needs," ASB told RNZ. "As part of these discussions, AIA NZ and NZHL are considering adopting our standard home loan offering for mortgage advisers as it makes sense for us to have a consistent adviser proposition.
“We're working closely with AIA NZ and NZHL and their mortgage advisers and will continue to do so during the transition.”
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