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.

Does the broker bias toward higher-paying lenders?

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

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

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

Are there any fees I'd pay a broker?

No — standard residential. Specialised may have disclosed fees.

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

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

How Does Refinancing

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.

Free advice.

How it works — 4 simple steps

Free broker chat

20-minute call about how we work.

Compare lenders

We compare 30+ lenders without cost to you.

Application support

We submit your application end to end.

Settle your home

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

Frequently asked questions

We use offer letters and vesting schedules to value RSUs conservatively. We present current vesting value + projected future vesting as a 3-5 year income average. This gives lenders confidence in your income stability while accounting for market volatility.

Both. We work with W2 employees, 1099 contractors, and consultants. For contractors, we use 2 years of tax returns plus business financials. We have lenders who specialise in contractor income—they understand the variability.

Unvested options have zero value for refinancing. We count only vested equity. If you have a 4-year vest, we use 25% of the grant value (what's vested) plus a conservative projection of future vesting.

If you've been in your new role 6+ months, most lenders will refinance. We'll use your offer letter plus 6 months of pay stubs. If less than 6 months, it's harder but possible with specialist lenders.

Yes, if you have 2+ years of bonus history. We average the past 2 years and present it conservatively. Some bonuses get counted at 50% to be conservative with variable compensation.

ESPP is counted as deferred compensation. If your company matches or you have a discount, we value it as part of total compensation package.

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How Does a Mortgage Broker Get Paid in Australia?