How Does a Mortgage Broker Get Paid Australia?

Q: How much does the bank pay the broker?

Upfront 0.5-0.7%, trail 0.15-0.25%/year. $700K loan: $3,500-$4,900 + ~$1,500/year.

Q: Does the broker bias toward higher-paying lenders?

Similar commission across lenders. Best Interest Duty law requires your interest first.

Q: If broker is free, why doesn't everyone use one?

Most do — 70%+ of Australian home loans through brokers.

Q: Are there any fees I'd pay a broker?

No — standard residential. Specialised may have disclosed fees.

Q: What's the difference between broker and bank lender directly?

Broker compares 30+ lenders. Bank only sells their products.

Who this guide is for

Australians wanting to understand mortgage broker compensation and whether using a broker costs them anything.

FHBs deciding between bank direct or broker
Refinancers comparing broker vs going to bank yourself
Buyers worried about hidden broker fees
People wanting transparent answer to "what's in it for the broker"

The local picture

Many Australians don't realise brokers are free to the borrower. They worry about commissions, conflicts of interest, or hidden fees. Transparent explanation helps.

How Mortgagefy helps locally

Mortgagefy explains broker compensation transparently. We're paid by the lender at settlement; you pay nothing for our advice.

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How it works — 4 simple steps

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Settle your home

You move in. Lender pays us at settlement, not you.

Frequently asked questions

How much does the bank pay the broker?

Upfront commission ~0.5-0.7% of loan amount. Ongoing trail ~0.15-0.25% per year of remaining balance. On $700K loan: ~$3,500-$4,900 upfront + ~$1,000-$1,750/year trail.

Does the broker bias toward higher-paying lenders?

Most lenders pay similar commission, so bias is limited. Best Interest Duty (regulatory requirement since 2021) requires brokers to recommend in your best interest, not theirs.

If broker is free, why doesn't everyone use one?

Most do — about 70%+ of Australian home loans go through brokers because of free comparison + lender access. Direct bank only makes sense if you're sure of one specific bank.

Are there any fees I'd pay a broker?

Standard residential home loans: no broker fees. Some specialised cases (commercial, complex structures, some non-conforming) may have broker fees disclosed upfront.

What's the difference between broker and bank lender directly?

Broker compares 30+ lenders. Bank lender only sells you their bank's products. Broker can find better rates and structures across the market.

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How Does a Mortgage Broker Get Paid in Australia?