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Before you sign anything

What does a mortgage broker actually cost?

Usually $0Reviewed July 2026

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.

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