Mortgage broker commission rates usually sit around 0.65% to 0.70% upfront and 0.15% a year in trail, according to the Mortgage & Finance Association of Australia (MFAA). The upfront range excludes GST. Individual lender schedules differ, and the aggregator agreement determines how much reaches your brokerage.
Current Upfront and Trail Rate Ranges
The MFAA remuneration guide gives a residential benchmark, not a rate promised by every lender. The published lender examples below show upfront rates of 0.60% to 0.75% and annual trail rates of 0.10% to 0.15%, excluding GST.
| Lender and Product | Upfront | Trail per Year | Rate Basis | Source |
|---|---|---|---|---|
| Bank of China home loans | 0.65% | 0.15% | Excluding GST, before the brokerage split | My Local Broker direct lender schedule |
| Brighten Financial residential loans | 0.75% | 0.15% | Excluding GST, before the brokerage split | My Local Broker direct lender schedule |
| Granite Home Loans home loan | 0.60% | 0.10% | Excluding GST, before the brokerage split | My Local Broker direct lender schedule |
These figures apply to the products and arrangements named in the source. Rates vary by product and agreement, so compare the schedule for your own accreditation and settlement. Brighten’s published upfront payment is capped at $20,000 per successful application, which limits the amount a percentage alone would suggest.
ING’s commission announcement quotes a flat 0.715% upfront rate and 0.165% trail for the life of the loan under its revised structure. Use the applicable schedule’s GST treatment when comparing those quoted rates with another lender’s figures.
Upfront commission is earned on an eligible settled loan, using the lender’s commissionable balance. Trail commission is paid over time while the loan remains eligible, using its applicable balance and rate.
The guide to how mortgage brokers are paid explains the payment channel.
What the Aggregator Changes
Your mortgage broker commission split determines how much of the lender payment reaches the brokerage. A percentage split reduces each commission, while membership costs and service packages can add fixed or transaction charges. A brokerage retaining the full commission still needs to allow for those charges.
Compare the AFG schedule, Connective schedule, LMG (Loan Market Group) schedule, Finsure schedule and YBR Aggregation (formerly Vow Financial) schedule. YBR Aggregation is the current name of the former Vow business, rather than another provider to count separately.
Confirm the rate and deductions in your signed agreement before forecasting revenue. Compare upfront and trail splits separately, because one retained percentage does not establish the other. The aggregator fee guide covers the fee models in detail.
Model Net Revenue
Net commission revenue is the eligible loan balance multiplied by the gross rate and your retained share, less applicable aggregator charges. Keep GST separate from business revenue, and use consistent tax treatment for every input.
This illustrative example assumes a $500,000 commissionable balance, a 0.65% upfront rate excluding GST and a brokerage retaining 90%. Gross upfront is $3,250. The aggregator’s 10% share is $325, leaving $2,925 before fixed fees and operating costs.
At an illustrative 0.15% annual trail rate, a constant eligible balance of $500,000 produces $750 gross a year excluding GST. A 90% retained share leaves $675 a year, or $56.25 a month, before other charges. Actual trail changes as the eligible balance changes.
Use the trail commission calculator with inputs that match the applicable schedule. Allow for each loan type and any stepped trail rate. Model discharge behaviour and clawback separately, because early repayment can reduce both future trail and retained upfront.
Keep Client and Commercial Decisions Separate
Commission rates belong in your revenue forecast. The client’s needs belong at the centre of product selection, including the loan’s interest rate and costs. Explain remuneration clearly, and identify and manage conflicts before making a recommendation.
The Australian Securities and Investments Commission (ASIC) explains the best interests duty in RG 273: Mortgage Brokers: Best Interests Duty. Its conflict priority rule requires you to prioritise the consumer’s interests when they conflict with your own or a related party’s interests.
During parliamentary scrutiny, CBA and Westpac argued for remuneration limits across bank lenders and mortgage brokers, as recorded in the committee’s report on bank culture and conduct. Broker groups opposed extending the cap to broker businesses. No uniform commission cap applies: lender schedules and aggregator agreements set the payment, while the Credit Guide explains remuneration to the client.
Record the schedule that applied at settlement, including its rate basis and deductions. Reconcile later payments against it and the recipient-created tax invoice (RCTI) so a rate change or missing payment can be investigated.
Track My Trail’s Commission Verification matches upfront payments to the trail expected to follow within two months and shows trail with no matching upfront. Use those flags to identify loans to investigate, then compare the underlying payment with your recorded schedule.
