ING Drops Clawbacks on Forced Property Sales

ING will waive broker commission clawbacks when borrowers sell due to life events from August — here's what this commission shift means for your home loan.

For borrowers working with a mortgage broker, the way brokers are paid can seem like an industry concern rather than a personal one. In practice, commission structures do influence the advice you receive — and a significant policy change announced by ING this week is a concrete example of the industry moving in a direction that benefits borrowers.

ING Australia has confirmed that, for new loans settled from 1 August 2026, it will waive clawback provisions on broker commissions when a property is sold between 12 and 18 months after settlement. The lender has also simplified its commission model and raised the maximum loan size eligible for commission.

According to The Adviser, the changes reflect ING's commitment to working more closely with the broker channel and address a long-running tension in how brokers are compensated when borrowers' circumstances change through no fault of either party.

What a Clawback Is — and Why It Matters to Borrowers

When a mortgage broker arranges a home loan, the lender typically pays two forms of commission: an upfront amount when the loan settles, calculated as a percentage of the loan size, and an ongoing trail payment for as long as the loan remains on the book. Clawback provisions allow the lender to recover the upfront commission if the loan is discharged — through repayment, refinancing, or a property sale — within a set period.

The original intent was to deter brokers from writing loans designed to churn quickly. But clawbacks have drawn increasing criticism because they can be triggered by events entirely outside the broker's control: a borrower's death, divorce, redundancy, or need to relocate for work can all force a property sale and result in a clawback on a loan the broker handled impeccably.

The Finance Brokers Association of Australia (FBAA) raised this directly in its June 2026 submission to Treasury's consultation on unfair trading practices, arguing that clawbacks triggered by borrowers' choices — even when brokers have fully met their obligations — are unfair and anti-competitive.

For borrowers, the relevance is indirect but real. Where clawback risk exists, there can be subtle pressure on advice: a broker who knows that a shorter fixed term or a flexible loan structure increases their exposure to a clawback if the client's circumstances change may be less inclined to recommend it, even if that product would better serve the borrower. Removing that pressure, even partially, is better alignment between how brokers are compensated and what borrowers actually need.

What ING Is Changing

ING's national sales manager for broker, Sergio Delvescovo, confirmed the details of the new policy.

For new loans settling from 1 August 2026:

**Clawbacks waived for property sales between 12 and 18 months.** Where a loan is discharged because the secured property is sold in this window, no clawback will apply. ING explicitly recognises that property sales in this period are often outside a broker's control.

**Flat upfront commission of 71.5 basis points.** Previously, ING's upfront commission varied with the loan-to-value ratio. The new structure removes that variation — a broker writing a loan at 85% LVR and a broker writing a loan at 60% LVR will now be paid the same rate. This removes a potential incentive to favour products at certain LVR thresholds.

**Trail commission of 16.5 basis points** for the life of the loan, unchanged.

**Maximum loan limit for upfront commission raised from $2 million to $5 million.** Brokers will now be able to earn upfront commission on a wider range of transactions.

Delvescovo said: "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. We believe our change is a more balanced approach, that doesn't punish brokers for decisions beyond their control."

Industry Response and What Comes Next

The FBAA's CEO, Leo Gagic, welcomed ING's policy as "a major move that should be followed by all lenders." He said every step that makes the system fairer for brokers is a positive one, and he hoped ING would also consider extending the waiver to cover the first 12 months, not just months 12 to 18. His position: "Brokers shouldn't be penalised at all for reasons beyond their control."

The broader context is that several lenders had already moved toward pro-rata clawback structures in 2023. ING's announcement goes a step further by eliminating the clawback entirely for the mid-term window. Whether other lenders follow, particularly on the 12-to-18-month exemption, will determine how quickly this becomes the industry norm.

The Adviser reports that ING has also committed to ensuring loans offered directly to customers carry no lower rates than those available through the broker channel — reinforcing that the bank is backing brokers as a genuine distribution partner rather than positioning against them.

What to Ask Your Broker

Understanding how your broker is paid is part of being an informed borrower. Under the Best Interest Duty, all mortgage brokers in Australia are legally required to act in your best interest and to disclose their remuneration. This information should appear in the Credit Proposal Disclosure document you receive before entering any credit contract.

The right questions to ask any broker:

- What upfront and trail commission do you receive on the loan you are recommending? - Are all the lenders you are comparing paying roughly the same commission, or does one pay meaningfully more? - What clawback conditions apply on each option, and how might they affect the advice I receive?

For borrowers comparing home loans, our cheapest home loans page lets you see what rates are currently available across lenders before any conversation. If you are considering refinancing to take advantage of the current competitive rate environment, our refinance savings calculator can show you whether the numbers stack up.