Home › Blog › Mortgage Broking
Mortgage Broking
True wellbeing begins at home.
Most mortgage brokers in Australia charge no fees — they are paid by the lender at settlement. Here is how broker remuneration works and what to watch for.
By Jason Given · April 2026 · 4 min read
In the vast majority of cases, mortgage brokers in Australia do not charge the borrower any fees. Brokers are paid by the lender once your loan settles — through a commission structure that is regulated by ASIC and disclosed to you in writing before your loan is submitted.
This means you get access to professional advice, comparison across dozens of lenders, full application management, and ongoing support — at no direct cost to you.
When your loan settles, the lender pays the broker an upfront commission — typically 0.55% to 0.65% of the loan amount. On a $500,000 loan, this is approximately $2,750 to $3,250. The lender also pays a smaller ongoing trail commission — typically 0.15% to 0.25% per annum on the remaining balance — for as long as the loan is active.
Commission rates are broadly similar across lenders. ASIC regulations require brokers to act in the borrower's best interest regardless of commission. Lendology discloses the specific commission for each recommended loan in our Credit Proposal document before you proceed.
Under the Best Interests Duty, brokers are legally required to recommend the loan that is in your best interest — not the one that pays the highest commission. The similarity of commission rates across lenders means there is little financial incentive to favour one lender over another based on commission alone.
Some brokers charge fees in specific circumstances. These include very small loans (under $150,000 to $200,000) where the commission does not justify the work involved, highly complex applications requiring significant additional time, or situations where a loan does not settle and no commission is earned.
Any broker fee must be disclosed to you in writing before any work begins. You must agree to it before the broker proceeds. At Lendology, we do not charge borrower fees regardless of loan size or complexity.
In most cases yes. Brokers are paid by the lender at settlement, not by the borrower. Lendology's service is always free to the borrower with no hidden fees.
No. ASIC research has found that broker-originated loans have interest rates broadly equivalent to loans arranged directly with a bank. The broker's commission is paid by the lender from their margin — not passed on to you as a higher rate.
A clawback occurs when a lender recoups the commission paid to a broker if the loan is repaid within 18 to 24 months. This is a risk the broker bears — not you. It does not affect your loan in any way, though it is why Lendology recommends loans you genuinely intend to keep.
Under the Best Interests Duty, brokers must legally act in your interest. Lendology discloses the commission for every loan option we present, so you can see exactly what we earn from each recommendation. If a different lender is genuinely better for you, we will recommend it regardless of commission.