How much does a mortgage broker cost?

For the overwhelming majority of residential borrowers in Australia, the answer is zero. You do not pay a mortgage broker for a standard home loan, a refinance or a pre-approval. The lender pays a commission when the loan settles, out of its own margin, and your rate and fees are the same as they would have been had you gone to that lender directly.

What “free” does and doesn't mean

It means no invoice, no hourly rate and no success fee on a normal home loan. It doesn't mean there are no costs in the transaction — you'll still pay lender application or settlement fees where they apply, valuation fees on some products, transfer duty, registration fees, conveyancing and a building and pest inspection. A broker doesn't create those, and a good one will get several of them waived where the lender is willing.

When a broker does charge a fee

Fees turn up in work where lender commission doesn't cover the effort, or where no commission exists at all. Typical examples are complex commercial and development finance, private and short-term lending, business restructures, difficult credit-impaired files requiring substantial work, and specialised SMSF or trust structures. Some brokers also charge for a standalone strategy or advice piece with no loan attached. Any such fee has to be quoted, explained and agreed in writing in advance — it can never appear as a surprise.

Clawback fees

If you discharge a loan within the lender's clawback period — commonly one to two years — the lender reclaims the upfront commission from the broker. Some brokerages recover that from the client, and if they do, it must be set out in the credit documents you sign at the start. Read that clause. Ask directly whether a clawback fee applies and in what circumstances, before you sign anything.

What you get without paying

Access to a panel of lenders instead of one. A serviceability assessment run against each lender's actual policy rather than a generic calculator. The application packaged the way that lender's assessors want it, which is a large part of why files get approved first time. Negotiation on rate and fees. Someone chasing the lender daily against your finance clause. And a rate review years later when a fixed period ends or your circumstances change — which is worth more than most of the rest put together.

The question to ask any broker

Ask three things before you engage anyone: do you charge me a fee, in what circumstances, and how much? Does a clawback fee apply if I repay or refinance early? And what commission will you receive on the loan you're recommending? All three answers must be available to you in writing, and a broker's willingness to give them plainly tells you most of what you need to know.

Where we stand

Our home loan, refinance, pre-approval and asset finance work costs you nothing — the lender pays us at settlement and the amount is disclosed to you in your Credit Proposal before you commit. Where a piece of complex commercial or specialised work genuinely warrants a fee, we'll say so at the outset, in writing, with the amount, and you can decide then. No fee ever arrives after the fact.

The information on this website is general in nature and does not take into account your personal objectives, financial situation or needs. Before acting on any information you should consider whether it is appropriate for you. Terms, conditions, fees, charges and normal lending criteria apply. Rates are subject to change.