Mortgage broker fees in Australia: what you may pay (and what you won’t)
Not sure if you’ll be charged a broker fee? This guide explains the difference between broker fees and lender fees, when brokers are often $0 upfront on standard home loans, and the scenarios where a separate advice fee can sometimes apply (complex, non‑standard, or very small loan sizes).
Last updated 23 February 2026 • Written by Rate Challenge (Credit Representative No. 567366) • General information only
Tip: if you’re specifically comparing a free mortgage broker option, see our service page here: Free mortgage broker (no upfront fee on standard home loans).
Quick answer: do mortgage brokers charge fees?
Many brokers do not charge an upfront fee for standard residential home loans because they are paid by the lender if your loan settles. However, some brokers may charge a separate broker fee in certain situations (for example, complex or non‑standard deals, some SMSF/commercial scenarios, or very small loan sizes).
If you want the “how”, read our deeper breakdown: How mortgage brokers get paid (commission explained).
Broker fee vs lender fees: what’s the difference?
The biggest confusion we see is people mixing up a broker fee (what the broker charges) with lender fees (what the bank charges). Even when your broker is “free” upfront, lenders may still charge their own fees.
| Cost type | What it is | Where you’ll see it |
|---|---|---|
| Broker fee | A fee charged by the broker for their service (if applicable). Not charged by the bank. | Broker agreement / quote; credit proposal documentation. |
| Lender fees | Bank fees tied to the loan (e.g., application, settlement, discharge on refinance, package fees). | Loan contract / schedule of fees; lender pricing disclosure. |
| Third‑party costs | Costs paid to others (e.g., conveyancing, registration, valuations, inspections). Some are optional. | Solicitor/conveyancer invoice; government fee schedule; lender request. |
The right question isn’t only “Is the broker free?” — it’s “What’s the total cost to set up and keep this loan, and does the structure suit my plans?”
Commission example (formula, not fixed numbers)
If your broker is lender‑paid, they’re typically remunerated via an upfront commission when the loan settles and a smaller ongoing trail commission while the loan remains outstanding. Exact rates vary by lender/product and are disclosed in your credit proposal.
Example formulas
A quick way to stay objective: focus on the loan’s repayments, features, fees and flexibility first. The best fit is the one that supports your goals and reduces risk — not just the one with the sharpest headline rate.
When might a mortgage broker fee apply?
A broker fee is usually about the amount of work required versus the economics of the loan. Situations where a fee is more likely to be discussed include:
- Non‑standard lending — tricky structures, unusual security, complex income, multiple entities, or time‑critical settlements.
- Very small loan sizes — where the work is similar but the commission is minimal.
- Some SMSF or commercial scenarios — different lenders, documentation and risk checks can add complexity.
- Credit issues / rebuilding — more time spent packaging, explaining, and selecting suitable lender policy.
- Research‑heavy comparisons — where you’re asking for modelling across multiple structures, splits, offsets and future scenarios.
If a fee applies, it should be clearly explained and confirmed upfront (before you decide to proceed).
Questions to ask a broker before you proceed
Use this checklist to avoid surprises and to compare brokers on transparency (not just rate talk):
- Will you charge me a broker fee in my scenario? If yes: how much, when is it payable, and what does it cover?
- Which lenders are you comparing and why? Ask about policy fit, not just the lowest rate.
- How are you paid by the lender? Upfront/trail commissions should be disclosed in your credit proposal.
- What are the likely lender fees? (application, package, discharge, valuation, settlement).
- What happens after settlement? Will they review your rate later, or are you on your own?
Rate Challenge transparency
Rate Challenge ABN 79 956 089 604. Credit Representative No. 567366 under Australian Credit Licence No. 390261. If an advice fee could apply in your case, we’ll confirm it upfront, in writing, before you decide to proceed.
Want to compare properly? Start here: Free mortgage broker service • How brokers get paid
Related guides in the “free mortgage broker” cluster
Free mortgage broker (standard home loans)
How our fee‑free broker service works, who pays us, and what “Best Interests Duty” means for your recommendation.
How mortgage brokers get paid
Upfront vs trail commission, how disclosure works, and how to judge advice quality beyond headline rates.
Free mortgage broker vs bank
A practical comparison: choice vs simplicity, policy fit, pricing, and who you deal with from first chat to settlement.
Mortgage broker fees FAQs
💸How much does a mortgage broker cost in Australia?
It depends. Many brokers don’t charge an upfront fee on standard home loans (they’re typically paid by the lender if the loan settles). In some complex or non‑standard scenarios, a broker may quote a separate advice fee. Always ask for the fee (if any) in writing before you proceed.
🧾If the broker is “free”, do I still pay anything?
Possibly. “Free” usually means no broker fee, but lenders can still charge their own fees (and you may pay third‑party costs like conveyancing). The best comparison is total cost, not just one fee line.
📘Do brokers have to tell me how they’re paid?
Yes — you should receive documents explaining commissions and any fees so you can see how your broker is remunerated. If you want the full breakdown, see how mortgage brokers get paid.
⚖️When is a broker fee most likely?
Most commonly when the deal is unusually complex, the loan size is very small, or the scenario falls outside standard residential lending. If a fee applies, it should be confirmed upfront (in writing) before you decide to proceed.
📉Does using a broker make my interest rate higher?
Generally, you shouldn’t pay more simply because you used a broker — lenders publish rates and cashback offers across direct and broker channels. Your final rate depends on your profile, product and negotiation. For a side‑by‑side breakdown, see free mortgage broker vs bank.
✅What’s the safest way to avoid fee surprises?
Ask early whether there is any broker fee in your scenario, confirm lender fees, total repayments and key features, and get any fee agreement in writing before you proceed.
Information accurate as at 23/02/2026. Lender policies and pricing can change; please confirm details before acting.