CBA mulls cut in commissions

Commonwealth Bank said it was "looking at" the level of commissions paid to mortgage brokers and seems likely to cut the soon.

The Financial Review quoted Ralph Norris, managing director of CBA, saying "it's a fact of life that at the moment we are losing money on every loan that goes through a broker.

"So there has to be some sharing of the pain. We are looking at it. It's a case of when, not if."

CBA has publicly mulled the prospect of cutting commissions paid to brokers before. Norris voiced similar views in a media briefing for the CBA profit two months ago.

Westpac a couple of weeks ago advised brokers it would lop 20 basis points off upfront commissions on loans and 10 basis points off trail commissions. The lower commissions from Westpac come into force over the next few weeks.