Mortgage Broker Commission Rates in Australia (2025 Update)

Feeling uncertain about where mortgage broker commission rates are heading in Australia?

You’re not alone—many brokers are keen to understand how shifts in commission structures might affect their livelihoods.

Commission rates aren’t just figures on a page—they directly impact your income and business planning.

Let’s explore how mortgage broker commission rates are stacking up this year.

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What are Mortgage Broker Commissions?

Mortgage broker commissions are the financial remuneration brokers receive from lenders for facilitating home loans. It serves as the primary source of income for brokers, who typically do not charge borrowers directly for their services. These commissions are structured in two main forms: upfront commissions and trail commissions.

Upfront commissions are one-time payments made when a loan is settled. Trail commissions are ongoing payments made over the life of the loan. Together, these commissions incentivise brokers to connect borrowers with suitable lenders and ensure the loans remain active.

It’s important to point out how brokers are paid: the client does not pay these fees. These fees are paid by the lenders (banks) to the broker, at no additional charge to the borrower.

Mortgage Broker Commission Rates

The actual commission rate you get as a broker will depend on what aggregator you’re with. Some aggregators have a percentage-based commission split, which is better when you’re starting out. And some aggregators have fixed-rate commissions, which is better when you start really expanding your trail book.

If you’re looking for specific mortgage broker commission rates, here are links to the fees and commission rates for some of the best aggregators for mortgage brokers in Australia:

You can use a trail commission calculator to project your future earnings as your client base grows and your trail book expands.

Understanding Mortgage Broker Commissions

Upfront Commissions

Upfront commissions are paid to brokers as a percentage of the total loan amount once the loan is settled. In Australia, these rates typically range from 0.5% to 0.7% of the loan amount.

For instance, on a $500,000 loan, a broker might earn an upfront commission of $2,500 to $3,500. These commissions are influenced by factors such as lender policies, loan types, and market competition.

They motivate brokers to secure loans for clients, as the payment is immediate and substantial. However, some lenders may apply clawback provisions, requiring brokers to return a portion of the commission if the loan is repaid or refinanced within a specified period.

Trail Commissions

Trail commissions, on the other hand, are ongoing payments made to brokers over the life of the loan. These are calculated as a percentage of the remaining loan balance, typically ranging from 0.1% to 0.3% annually.

For example, if a borrower has a $400,000 loan balance, a broker might earn a trail commission of $400 to $1,200 per year. Trail commissions provide brokers with long-term financial stability and passive income.

They also incentivise brokers to maintain strong relationships with clients, ensuring loans remain active and borrowers are satisfied with their arrangements.

Recent Changes to Commission Structures

Regulatory and Legislative Updates

The mortgage broking industry in Australia has undergone significant regulatory changes in recent years. The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry highlighted concerns about transparency and potential conflicts of interest in commission-based earnings.

As a result, new regulations have been introduced to enhance transparency and protect borrowers. Brokers are now required to disclose detailed information about their commission arrangements to clients.

This includes the percentage rates, potential clawback provisions, and any other financial incentives they receive from lenders. These changes aim to ensure borrowers are fully informed and can make decisions based on unbiased advice.

Effects on Brokers and Borrowers

The updated commission structures have had a mixed impact on brokers and borrowers. For brokers, the increased transparency requirements have necessitated adjustments in how they present their services and manage client relationships.

Some brokers have also faced challenges in maintaining profitability under the new regulations. For borrowers, the changes have generally been positive.

Greater transparency has made it easier to understand how brokers are compensated and to identify potential conflicts of interest. This has led to increased trust in the mortgage broking industry and, in some cases, reduced costs for borrowers.

Industry Responses

The industry has responded to these changes in various ways. Many brokers have embraced the new regulations, viewing them as an opportunity to build trust and differentiate themselves from competitors.

Professional associations have also played a key role in supporting brokers, providing training and resources to help them navigate the evolving landscape. Some lenders have adjusted their commission models to align with the new requirements, offering more straightforward and transparent structures.

These changes have contributed to a more balanced and ethical mortgage broking industry.

The Economic Impact of Commission Trends

Trends in Commission Rates

Commission rates have evolved significantly over the past few years. While upfront and trail commission percentages have remained relatively stable, the introduction of clawback provisions and other adjustments has influenced how brokers earn their income.

In 2025, these rates are expected to stabilise, reflecting a mature and regulated market. The growth of the mortgage broking industry has also been closely tied to commission trends.

As brokers continue to play a vital role in connecting borrowers with lenders, their earnings remain a key indicator of the industry’s health and sustainability.

Consumer Impacts

For consumers, commission trends have a direct impact on their borrowing experience. Transparent commission structures have made it easier for borrowers to compare brokers and choose those who prioritise their interests.

This has fostered a more competitive market, benefiting borrowers through better service and lower costs. However, some challenges remain.

Borrowers must remain vigilant and ask the right questions to ensure they receive unbiased advice. Understanding how commissions influence broker behaviour is essential for making informed decisions.

Market Dynamics

Broader economic factors, such as interest rate changes and housing market conditions, also play a role in shaping commission rates. As the Australian housing market continues to evolve, lenders and brokers must adapt to changing dynamics to remain competitive.

Strong partnerships between lenders and brokers are crucial for maintaining a healthy and sustainable mortgage market.

Mortgage Brokers and Ethical Considerations

Transparency and Disclosure

Transparency is a cornerstone of ethical mortgage broking. Brokers are legally required to disclose their commission arrangements to clients, ensuring borrowers understand how their services are compensated.

This transparency helps build trust and mitigates potential conflicts of interest.

Ethical Challenges

Despite these requirements, brokers may still face ethical dilemmas. Balancing client interests with financial incentives from lenders can be challenging, particularly when commission rates vary between loan products.

To maintain ethical standards, brokers must prioritise their clients’ needs and provide unbiased advice.

Regulatory Compliance

The Australian Securities and Investments Commission (ASIC) plays a key role in monitoring compliance with financial regulations. Brokers who fail to meet their ethical and legal obligations may face penalties, including fines and licence suspensions.

Adhering to these regulations is essential for maintaining trust and credibility in the industry.

Frequently Asked Questions

Common Questions About Commission Rates

  • What are upfront and trail commissions, and how do they differ?

    Upfront commissions are one-time payments made upon loan settlement, while trail commissions are ongoing payments based on the remaining loan balance.


  • How do commission rates vary between lenders and loan products?

    Rates can vary depending on lender policies, loan types, and market conditions. Borrowers should ask brokers for detailed information about their commission arrangements.


  • Are commission rates negotiable between brokers and lenders?

    In some cases, brokers may negotiate commission rates with lenders. However, these rates are typically standardised across the industry.

Impact on Borrowers

  • How do broker commissions affect the advice provided to borrowers?

    Commissions can influence broker behaviour, but transparency requirements help ensure borrowers receive unbiased advice.


  • Do higher commissions lead to higher costs for borrowers?

    Not necessarily. Borrowers should focus on the overall value and suitability of the loan product rather than the commission rate.


  • What should borrowers look for when choosing a broker based on commission structures?

    Borrowers should prioritise brokers who are transparent about their commissions and demonstrate a commitment to client interests.

Tips for Borrowers

  • Ask brokers about their commission arrangements and any potential conflicts of interest.
  • Compare multiple brokers to ensure you receive unbiased advice.
  • Look for brokers who prioritise your needs over financial incentives.

Understanding mortgage broker commission rates is essential for navigating the Australian mortgage market in 2025. By staying informed and asking the right questions, borrowers can make confident decisions and secure the best possible outcomes.

Track My Trail Team

The Track My Trail Team develops software to simplify trail book management for mortgage brokers. Their tools provide fast and practical insights to help brokers get the most out of their trail books.