Mortgage aggregator fees are the charges a broker pays for aggregation services, through a fixed membership fee, a commission split or both. A flat fee costs less once the commission you would surrender under a split exceeds the fixed charge, after allowing for extra costs.
Compare each offer using your own upfront and trail income over 12 months. A low advertised fee can cost more if it excludes software your team needs or limits access to lenders your clients use.
What an Aggregator Fee Covers
An aggregator gives your brokerage access to a service package that can include lender accreditations, a broker CRM and loan lodgement tools. Support can cover the application through to settlement. The agreement determines which services are included.
Confirm who holds the Australian credit licence and which lenders will accredit your business. A long lender panel is worth little if your clients’ lenders are missing or you cannot obtain accreditation with them.
How Aggregator Fees Are Charged
Aggregator commission models have three common structures.
- A commission split lets the aggregator retain an agreed share of upfront, trail or both. Check the percentage for each payment type.
- A fixed membership charge is payable for the agreed period. A flat fee aggregator can let you retain all upfront and trail commission.
- A combined model has a membership charge and a commission split. Include both when calculating the cost.
For an offer with a desk fee, include the recurring charge and any separate commission split in the annual total.
Technology charges, professional indemnity (PI) insurance and optional services can increase the total. Other costs can include onboarding, extra user licences or paid marketing support. Record the billing period and GST treatment beside each amount.
A 90/90 split generally means the broker keeps 90% of upfront and 90% of trail, so the aggregator retains 10% of each. Apply the agreement’s definitions when modelling the offer. A percentage of gross commission produces a different result from a percentage applied after another deduction.
Flat Fee or Commission Split?
A flat monthly membership suits a brokerage whose retained commission exceeds the fixed cost and which can pay it during quieter months. A percentage split costs less at lower commission income when the service packages and other charges are comparable.
LMG (Loan Market Group) publishes its 100/100 Flat Fee plan, under which the broker keeps all upfront and trail commission. Its residential pricing page describes the service package. The LMG fee schedule brings its fee items and lender rates together.
Calculate the Break-Even
If the same split applies to upfront and trail, divide the annual flat fee by the aggregator’s retained percentage. The result is the annual gross commission at which the fees are equal, assuming other costs match.
For a hypothetical comparison, a $1,000 monthly flat fee costs $12,000 a year. Against a 10% aggregator share, the break-even is $120,000 in annual commission. These figures exclude GST, assume identical services and extra charges, and are illustrative terms.
| Gross upfront | Gross commission including trail | 10% aggregator share | Annual flat fee |
|---|---|---|---|
| $60,000 | $108,000 | $10,800 | $12,000 |
| $72,000 | $120,000 | $12,000 | $12,000 |
| $90,000 | $138,000 | $13,800 | $12,000 |
With $48,000 in annual trail, the split already costs $4,800. Another $72,000 in gross upfront reaches the $120,000 break-even. At an illustrative upfront rate of 0.60%, that requires $12 million in eligible settlements.
Use the commission-bearing amount in your lender schedules. Include adjustments and clawbacks on the same basis in both models. The AFG commission schedule is one place to check lender-specific terms.
If the upfront and trail splits differ, multiply each income stream by its own retained percentage, then add the results. Add the split plan’s fixed charges. Compare that total with the flat fee plus its extra charges over the same period.
Higher trail income lowers the new settlement volume needed to reach break-even when the aggregator takes a share of trail. Extra charges on the flat fee plan move break-even higher. A tiered split needs a calculation at each tier.
Match the Model to Your Cash Flow
Run a quieter-year scenario as well as your expected year. A fixed fee remains payable when settlements fall. A split moves with the commission subject to that split, although an established trail book can keep the charge substantial.
For a team, count every paid user and any minimum brokerage charge. Then calculate the commission remaining after aggregator costs before applying your internal broker pay arrangements. The brokerage pay-model comparison covers that separate decision.
Whichever aggregator pricing model you choose, commission disclosure and the best interests duty still apply. Under section 113 of the National Consumer Credit Protection Act 2009, the licensee’s Credit Guide includes information about likely indirect remuneration, including commissions. It also includes estimates or ranges and how amounts are worked out, subject to applicable regulatory exceptions.
The best interests duty requires mortgage brokers to act in the consumer’s best interests when providing credit assistance. Your aggregator fee model does not change that duty. ASIC’s Regulatory Guide 273: Mortgage Brokers: Best Interests Duty explains these obligations.
Published Aggregator Fee Pages
Use each group’s schedule for fee items and lender commission terms. Its profile explains the broader aggregation service.
- AFG: fees and commission schedule and aggregator profile.
- Connective: fees and commission schedule and aggregator profile.
- LMG: fees and commission schedule and aggregator profile.
- Finsure: fees and commission schedule and aggregator profile.
- YBR Aggregation (formerly Vow Financial): fees and commission schedule and aggregator profile.
What to Compare Beyond the Headline Fee
Lender accreditation can decide whether an apparently cheaper offer works for your brokerage. Compare your actual lender mix with the accreditations available to you under each agreement.
Test the software with a sample file from enquiry through lodgement. Count repeated data entry and manual document handling. Include the cost of any extra systems your team needs to complete the same work.
Read the agreement’s commission ownership and trail treatment clauses. Establish who receives existing trail after departure, which deductions continue and whether a transfer requires another party’s consent.
Compare notice periods and data export rights. Check which client records and documents you can export, in what format and at what cost. Allow for staff time and overlapping subscriptions during a move.
How to Compare Two Aggregator Offers
- List your lenders and eligible settlement volumes over 12 months. Add gross upfront and trail income from the same period.
- Confirm accreditation with those lenders under each offer. Identify any missing lender before comparing the fee totals.
- Apply the same income figures to both models. Include recurring charges, user costs, GST treatment and any setup or exit cost.
- Run a sample file in each platform. Compare the workflow alongside the written terms for commission ownership, trail and data export.
Use monthly trail checks to establish what your book actually earns. Track My Trail’s Quick Analysis compares two monthly aggregator reports and shows clients added, discharged or refinanced, alongside other changes in trail income.
A recruitment payment can outweigh a fee difference in the first year but leave you paying more later. Record it separately, including any repayment conditions. Choose the offer on recurring net income, lender access and the file workflow your brokerage will use.
