If a loan is discharged early — usually within two years — the lender reclaims some or all of the upfront commission from the broker. This discourages churning loans for commission.

Knowledge base / Brokers

How do mortgage brokers get paid?

Q: How do mortgage brokers get paid?

Lenders pay brokers a commission when a loan settles: an upfront commission (commonly around 0.5–0.7% of the loan) and a small ongoing trail commission (commonly around 0.15–0.2% per year). The borrower typically pays the broker nothing.

Q: Does using a broker make my loan more expensive?

No. Broker commissions are paid from the lender's margin, and broker-arranged loans are priced from the same rate sheets as direct loans. Brokers also operate under a legal Best Interests Duty.

Secure Finance · Brokers · Updated July 2026

Mortgage brokers are paid by lenders, not borrowers: an upfront commission when the loan settles (commonly around 0.5–0.7% of the loan amount) and a small ongoing "trail" (commonly around 0.15–0.2% a year). That's why using a broker is typically free to you.

The two commissions

Upfront commission

Paid by the lender when your loan settles, calculated on the loan balance (often net of any offset funds). It compensates the broker for the comparison, application and settlement work — work you'd otherwise do alone or a bank staffer would do for one lender only.

Trail commission

A smaller ongoing payment for the life of the loan. In principle it pays for ongoing service — annual reviews, repricing requests, refinance checks. A broker who ignores you after settlement is collecting trail without earning it; services like Rate Monitor exist to make that ongoing review systematic instead of hopeful.

Who ultimately pays?

Commissions come out of the lender's margin — the same margin that funds bank branches and direct sales teams. Broker-arranged loans are priced from the same rate sheets as direct-to-bank loans; there is no "broker surcharge" on your rate. Australian brokers also operate under a legislated Best Interests Duty: they must act in your best interests, not the lender's, and must disclose their commissions in the Credit Guide you receive.

Clawbacks: the safeguard most people haven't heard of

If a loan is discharged within roughly the first two years, the lender claws back some or all of the upfront commission from the broker. It's a structural disincentive against churning borrowers between lenders for commission — a refinance has to actually last to be worth the broker's while, which aligns their interests with a refinance that actually suits you.

How this applies to Rate Monitor

Rate Monitor is free to use. Monitoring, review and broker assessment cost you nothing. If you choose to proceed with a loan through Secure Finance, we may receive commission from the lender — disclosed transparently, as our compliance framework requires. A current-lender rate renegotiation costs you nothing either. Because we only pursue opportunities that may clear a $2,500 first-year saving benchmark — through your current lender or a refinance — the service only recommends moves that are meaningfully in your favour first.

FAQ

Do brokers charge fees directly?

Most residential brokers, including Secure Finance, charge borrowers nothing. Any fee-for-service arrangement must be disclosed and agreed before work begins.

Do all lenders pay the same commission?

Rates vary modestly between lenders. The Best Interests Duty exists precisely so recommendations are driven by your outcome, not the commission difference.

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General information only, prepared by Secure Finance Services Pty Ltd (ACL 465059). Commission ranges are indicative market norms and vary by lender and product. Secure Finance may receive commission from lenders if a customer proceeds with a loan through Secure Finance.