Mortgage broker fees in Australia
Most mortgage brokers in Australia don’t charge you anything. The lender pays them an upfront commission when your loan settles and a smaller trail commission each year it runs. Here is what those numbers look like, when a broker can charge you directly, and what they have to disclose.
General information only, not financial advice. Updated October 2026.
How the money flows
| Payment | Who pays | Typical size | When |
|---|---|---|---|
| Upfront commission | The lender | About 0.5 to 0.7 per cent of the loan | Once, at settlement |
| Trail commission | The lender | About 0.15 to 0.2 per cent a year | Monthly, while the loan runs |
| Broker fee to you | You | Nil for most home loans; sometimes a few hundred to a couple of thousand dollars for complex cases | Only if agreed in writing beforehand |
| Clawback | The broker, back to the lender | Part or all of the upfront | If the loan ends within one to two years |
Ranges are typical of Australian lenders in 2026 and vary by lender and loan. Your broker’s credit proposal shows the exact figures for your loan.
Why the lender pays
A mortgage broker brings the lender a packaged, pre-checked application, which costs the lender less than winning the same customer through a branch or an ad. Lenders compete for broker business with commissions and with pricing, which is why broker-sourced loans are often a little cheaper, not dearer.
The commission is paid to the broker’s aggregator (the licensing group they belong to), which keeps a share and passes the rest to the broker. Big aggregators in Australia include AFG, Connective, Finsure, Loan Market, Mortgage Choice and Aussie.
When a broker charges you
A fee to you is legal but uncommon for a normal home loan. You are more likely to see one for small loans where the commission wouldn’t cover the work, for complex commercial or self-managed super lending, or as a fee-for-service model where the broker rebates the commission instead. In every case the fee must be in a written agreement before the broker starts, and it must appear in the credit proposal.
What a broker cannot do is charge you to make up for a clawback, or earn a bonus for steering you to a particular lender. Volume-based bonuses were removed from the industry after the 2019 Royal Commission, and the best interests duty has applied since 2021.
What to ask
- “Do you charge me a fee, and if so for what?”
- “What commission will you receive on the loan you are recommending?” (The credit proposal shows it.)
- “How many lenders are on your panel, and which ones did you compare for me?”
- “What happens if I refinance in the first two years?”
Then compare brokers on something other than price, because for most people the price is the same: reviews, reply times and whether they specialise in your situation. That is the BrokerScore. Start with your suburb, or read mortgage broker vs bank.
Common questions
Do I pay a mortgage broker?
For a standard home loan, usually not. The lender pays the broker a commission when the loan settles. Some brokers charge a fee for complex or small loans, or for work that does not lead to a loan, and that has to be agreed with you in writing before they start.
How much commission does a mortgage broker get?
Commission is set by each lender, not the broker. An upfront commission is commonly in the range of 0.5 to 0.7 per cent of the loan amount, and a trail commission of around 0.15 to 0.2 per cent a year for as long as the loan runs. On a $600,000 loan that is roughly $3,000 to $4,200 upfront and $900 to $1,200 a year in trail, shared with the broker’s aggregator.
Does the commission make my loan more expensive?
No. Lenders price loans the same whether you come through a broker or a branch, and often offer broker-only discounts, because a broker is cheaper for them than running branches.
What is a clawback?
If you refinance or pay out the loan within the first one to two years, the lender takes back some or all of the upfront commission from the broker. Brokers are not allowed to pass clawbacks on to you.
What does a mortgage broker have to tell me about fees?
Before you apply, a licensed mortgage broker must give you a credit guide that explains how they are paid, and a credit proposal that shows the commission on the loan they recommend and any fee they charge you. You can ask for the actual dollar amounts.
Is a fee-for-service broker better?
Not necessarily. A few brokers charge you a fee and rebate the commission, which can suit large loans. For most borrowers the commission model costs nothing and the best interests duty applies either way.
Find a mortgage broker near you
Every mortgage broker on BrokerScore is on the ASIC register. Compare their reviews, reply times and BrokerScore, then contact the one you choose for free.