Mortgage Broker Commission Percentage | What They Really Earn

How is the Australian mortgage broker paid?

Mortgage brokers in Australia are paid by the lender, not by you, which means you receive expert guidance without an upfront cost. Their income typically comes from two forms of commission paid after your loan settles. How brokers are compensated:

• Upfront commission: A one-time payment based on the size of the settled loan.

• Trailing commission: Ongoing payments for maintaining the loan and supporting you after settlement.

• Clawback policies: If you refinance or repay early, the lender may reclaim some commission, encouraging long-term, suitable recommendations.

HeyNest connects you to brokers who fully disclose how they’re paid, ensuring transparency before you choose a loan.

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What is the typical mortgage broker commission percentage?

Commission rates in Australia fall within a standard range used across the industry. This helps ensure that brokers recommend loans based on your needs, not based on who pays the most. What you should know:

• Standardised percentage structure: Most lenders pay similar rates, minimising bias.

• Legal disclosure: Brokers must clearly document the commission they will receive.

• Alternative fee models: Rarely, a broker may charge a fee, but it must be disclosed and not duplicated alongside commission.

HeyNest brokers prioritise your financial goals and compare options widely, rather than steering you toward lenders offering higher payouts.

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Dedicated, personalized guide every step of the way.

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Standard, often non-negotiable in-house rates.

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Does the commission percentage affect my loan rate?

Broker commissions do not increase your interest rate. These payments are a marketing expense absorbed by the lender, with or without a broker. In many cases, brokers can even secure better pricing than going directly to a bank. Why your rate isn’t impacted:

• No mark-up: Commission isn’t added to your loan cost or rate.

• Same access to offers: Brokers see the same products you do and sometimes exclusive discounts.

• Best interests duty: Legally obligates brokers to choose the best loan for you, not the highest commission.

With HeyNest, you gain access to independent experts who negotiate competitive rates on your behalf, ensuring unbiased, client-focused advice every time.

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Frequently asked questions

Do I pay the mortgage broker directly in Australia?

No. For residential loans, the broker is almost always paid by the lender via commission after the loan settles, not by the borrower.

Is the broker commission included in my loan amount?

No, the commission is a business expense paid by the lender. It does not add to your principal loan balance or interest rate.

Is the commission percentage negotiable with the broker?

The percentage paid by the lender is fixed, but a few brokers may offer a rebate of a portion of the commission to the client, which is fully disclosed.