MORTGAGE BROKER FEES • AUSTRALIA
Mortgage Broker Fees in Australia: What Do Brokers Cost?
Most Australian mortgage brokers are paid by lenders rather than by borrowers directly, but a broker can charge a direct fee in some situations. This guide separates broker fees, lender fees, third-party costs and commission so you can see the real cost before you proceed.
$0 broker fee on many standard home loansDirect fees should be in writingLender fees are separateUpdated 3 Sep 2026
General information only. Confirm the broker’s current quote/disclosures and the lender’s current fee schedule.
QUICK ANSWER
Do mortgage brokers charge fees in Australia?
Moneysmart says lenders generally pay mortgage brokers commission, so consumers usually do not pay the broker directly. A broker may still charge a direct fee, which should be clearly communicated and set out in writing.
Standard residential lending
Many brokers charge no direct broker fee and are remunerated by the lender if the loan settles.
Specialist or complex work
A direct fee may be quoted where the work is outside the broker’s normal residential model or unusually time-intensive.
No broker fee ≠ no costs
Lender fees, LMI, government charges and professional costs may still apply.
TOTAL COST
Broker fee, lender fee and third-party cost are different.
Separate who charges each cost and where it should appear.
| Cost | Who receives it? | Examples | What to check |
|---|---|---|---|
| Broker fee | Broker | Quoted advice/service fee | Amount, scope, payment trigger and terms in writing |
| Lender fees | Bank/lender | Application, annual/package, settlement, discharge | Current lender fee schedule |
| LMI | Lender/insurer arrangement | Lenders mortgage insurance where required | Whether it applies and whether capitalised |
| Government/professional | Third parties | Registration, conveyancing, inspections | Separate current quotes |
COMMISSION
If the broker is lender-paid, how does the money work?
MFAA’s current public guide describes upfront commission, trail commission and clawback.
Upfront commission
MFAA says it is generally around 0.65%–0.70% of the drawn loan amount, excluding GST.
Trail commission
MFAA says trail is generally around 0.15% of the outstanding loan balance, excluding GST.
Clawback
If a loan is repaid or refinanced early, a lender may reclaim upfront commission from the broker. MFAA says brokers cannot pass that clawback cost on to the client.
WHEN A DIRECT FEE MAY APPEAR
Ask what the fee covers, not just whether one exists.
There is no universal direct-fee schedule across the Australian broking industry.
Complex structures
Multiple entities, unusual income, non-standard security or restructuring can require more research and packaging.
Specialist finance
Some commercial, SMSF or specialist transactions sit outside ordinary residential broker economics.
Small or unusual transactions
A broker may quote a minimum or fixed service fee where workload is substantial relative to the loan.
Questions to ask before agreeing to a fee
How much is it? When is it payable? What does it cover? Is any part refundable? Does lender commission still apply? What happens if the loan does not proceed?
AUTHORITATIVE SOURCES
Check the fee model against current Australian guidance.
These sources frame the page.
Moneysmart
Consumer guidance on what brokers do, how they are paid, direct broker fees and questions to ask. Read Moneysmart.
ASIC RG 273
ASIC guidance on mortgage-broker Best Interests Duty and prioritising the consumer where conflicts exist. Read ASIC.
MFAA remuneration guide
Industry explanation of upfront commission, trail and clawback, including current typical commission ranges. Read MFAA.
RELATED TRANSPARENCY
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YOUR BROKER
Clear disclosure, policy-first comparison and a recommendation that can be explained.
David Warburton combines commercial-banking experience with mortgage broking and a 35+ lender broker panel. Rate Challenge also maintains a broader 100+ lender rate dataset for market context.
MORTGAGE BROKER FEE FAQS
Common fee questions.
How much does a mortgage broker cost in Australia?
There is no universal direct fee. Many standard residential brokers are lender-paid and charge the borrower no direct broker fee.
If my broker is free, do I still pay anything?
Possibly. Lender fees, LMI, government charges and professional costs may still apply.
Does a broker have to tell me about a direct fee?
Moneysmart says a direct broker fee should be clearly communicated and set out in a written quote.
What is the difference between a broker fee and commission?
A broker fee is charged to you directly; commission is generally paid by the lender.
Can a broker charge a fee and receive commission?
Models vary. Ask for clear written disclosure of both.
Can a broker charge me a clawback fee?
MFAA says brokers cannot pass lender commission clawback costs on to clients.
Does using a broker make my rate higher?
Not automatically. Compare the actual rate, fees and features available in your scenario.
What should I ask before choosing a broker?
Ask about the lender panel, direct fees, lender-paid commission, total costs, recommendation rationale and after-settlement service.
Know the total cost before you choose the loan.
Separate broker fees, lender fees, commission and third-party costs.