Lender-paid commission
A lender may pay an upfront commission after settlement and an ongoing trail commission while the loan remains in place. Amounts can vary by lender, product and balance and should appear in the broker's disclosure documents.
Customer fees
Some brokers charge a customer fee for particular services or circumstances. Ask what triggers the fee, whether it is refundable and whether it applies if the loan does not settle.
Clawback and conflicts
A lender may recover commission if a loan is repaid or refinanced within a specified period. Ask whether any clawback could affect you and how conflicts between remuneration and product choice are managed.
Key points
- Read the written credit proposal
- Ask about upfront and trail commission
- Confirm any customer fee before proceeding
- Understand possible clawback terms
Frequently asked questions
Are mortgage brokers always free?
No universal rule applies. Some rely on lender commission and some charge fees in defined circumstances, so check the written disclosure.
Does the lender add commission to my interest rate?
The lender sets pricing under its product and credit policy. Compare the product's rate, fees and features and review the disclosed remuneration separately.