How is a Mortgage Broker paid?

A Mortgage Broker is paid by receiving a commission or fee from lenders. This commission will vary depending on the lender as well as the size of the loan.

Firstly, an upfront commission is paid. This is the largest proportion of our payment and is normally around 0.55% to 0.77% (inc. GST) of the loan value.

The second part of our payment is through a recurring commission, also known as a "trailing commission". This is paid on a monthly basis and is calculated based on the remaining loan amount each year. While some lenders offer no ongoing commission, others offer an ongoing commission of 0.165% to 0.33% based on the remaining value of the loan.