Homeloans Ltd will reward key brokers with a boost to its upfront commissions on its new range of full doc premium home loans.

Brokers who write the new Homeloans 6.99 per cent Premium Saver, 7.14 per cent Premium or 7.34 per cent Premium Line of Credit mortgages will receive a one per cent upfront commission until January 2009.

And the good news is that on top of the beefed-up upfront commission, the relevant broker trails remain unaffected.

According to Homeloans Ltd general manager of sales Tony Carn, the new suite of premium mortgages coupled with a one per cent upfront payment will arm brokers with a solid alternative to bank products.

“The broking industry is well aware of threats of a bank dominated industry,” Mr Carn said.

“We’ve launched this new initiative to highlight the important role that Homeloans Ltd continues to play as a non-bank lender and to help ensure that the mortgage market remains competitive.”

Mr Carn believes that brokers and non-bank lenders are ideally aligned to grow together.

Not only is there no threat of channel conflict for brokers who work with non-bank lenders, their rates are highly competitive and the non-bank sector has long been the innovator in terms of product, Mr Carn said.

“We’re committed to ensuring Australia’s brokers have access to products that match the banks but are backed by better service and support - areas where the banks frequently fall short.”

As well as the one per cent upfront commission payment, the new premium home loan range does not include traditional clawback clauses, nor are cross sell or other requirements in place to hit commission levels. Moreover, brokers can be sure of an intelligent approach to credit, a quick turnaround plus the capacity to lodge online.

“Brokers have the ability to shape their own future in terms of where they decide to channel their business. We see our role as a leader in the industry and we’ll continue to produce products to meet the needs of brokers,” Mr Carn said.

“While our latest promotion will not appeal to all brokers, it will certainly appeal to those with a value proposition that includes being able to sell themselves and their service - rather than merely referring their customers to a mainstream bank brand.”