Before you sign anything
What does a mortgage broker actually cost?
The lender pays them — roughly 0.6–0.7% upfront plus an ongoing trail on your loan balance.
A mortgage broker usually costs you nothing directly. The lender pays them a commission when your loan settles, and a smaller trailing commission every year the loan stays with that lender. Australian law requires the commission to be disclosed to you in writing, and a best-interests duty requires the broker to recommend what suits you rather than what pays them best. Both of those protections are real — and both are easier to rely on if you have actually asked the question.
How they actually get paid
- Upfront commission of roughly 0.6–0.7% of the loan amount, paid by the lender after settlement.
- Trail commission of roughly 0.1–0.2% of the outstanding balance each year, for as long as you stay with that lender.
- Commission must be disclosed to you in writing before you commit — this is a legal requirement, not a courtesy.
- A best-interests duty applies under the NCCP Act: the broker must act in your interests, not the lender's.
The fee structures you'll be offered
Lender-paid (the norm)
No fee to you. The thing worth understanding is that trail commission gives your broker an interest in you staying put — which is not always what suits you.
Fee-for-service
You pay the broker and they rebate the commission, or take none. Rare in Australia, but it removes the conflict entirely. Worth asking about on a complex loan.
Walk away if you see this
- Reluctance to show you the written commission disclosure. You are entitled to it.
- A very small lender panel presented as though it were the whole market.
- Being steered toward a lender without a clear explanation of why it beats the alternatives on your numbers.
- Any suggestion you inflate income or omit debts on an application. Walk away, and report it.
Ask these before you sign
- How many lenders are on your panel, and does commission differ between them?
- Show me the written commission disclosure for the loan you are recommending.
- Which lender pays you the most, and is that the one you have recommended?
- What would you recommend if you were paid nothing either way?
Where these figures come from
These are category benchmarks, not quotes. Individual fees vary — always get the total in writing before you engage anyone. Reviewed July 2026.
Now compare mortgage brokers — every one checked against a register.
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