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Home Loans
Commission Details
Adjacent Income Streams
Results
Home Loans | Yearly Upfront
$0
Home Loans | Yearly Trail
$0
Adjacent Income | Yearly
$0
Total Income | Yearly
$0
Yearly Earnings Breakdown
Annual Trail Estimate (5 Years)
Summary | Annual Income Estimate
Figures show total trail income, split between home loans and adjacent income streams.
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How to Calculate Commission Income for a Mortgage
Mortgage brokers have two types of commission—upfront commissions and trail commissions.
An upfront commission usually arrives soon after loan settlement. A trail commission tends to pay out monthly or annually, based on the remaining balance of the loan.
Key Steps to Calculate Commissions
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Determine the Loan Amount
Identify the total funds borrowed. This figure underpins both upfront and trail calculations.
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Apply the Upfront Commission Rate
Multiply the loan amount by the upfront commission percentage. For example, a $400,000 loan at 1.0% would produce an upfront commission of $4,000.
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Calculate the Trail Commission
Take the same loan amount and multiply it by the trail commission percentage. Using a 0.15% rate on a $400,000 loan leads to an annual trail of $600.
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Factor in Multiple Loans
Sum the commission from each loan if multiple loans settle every year. A higher volume of annual settlements means more cumulative commission.
Example with Sample Rates
- Number of Loans Settled per Year: 50
- Average Loan Amount: $400,000
- Upfront Commission (1.0%): $4,000 per loan
- Trail Commission (0.15%): $600 per loan per year
Multiply each figure by the total number of settled loans to get the combined total. Upfront commissions for the year could reach $200,000 (50 × $4,000), and the trail could be $30,000 (50 × $600) in the first year.
Each mortgage aggregator has their own guidelines and rates. Always confirm exact rates and payment frequencies.