How Do Mortgage Brokers Get Paid

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A mortgage broker is an intermediary who analyses their clients’ situations and matches mortgage options that suits their requirements. They are educated in the field and are heavily regulated. They can be employed by a firm or work privately. Brokers offer borrowers different plans from various lenders, and are hired by people looking for a mortgage loan to help them find what they are looking for. They understand the market, client’s needs and only then source loans accordingly. Since they are in constant contact with different lenders, mortgage brokers have a wide range of options to choose from.

How Do Mortgage Brokers Get Paid?

Mortgage companies pay their brokers in a variety of ways. Some mortgage brokers earn salaries based on their experience and performance while others receive a percentage of the mortgages they lend to clients. Understanding how mortgage brokers get paid could help you choose a professional who meets your needs.

Upfront and Trailing Commissions

Most mortgage brokers get paid through commission. That means they get a small piece of the mortgages they broker to their clients. There are, however, two primary ways for mortgage brokers to get paid through commission.

Most brokers’ compensation comes from the lender, not the borrower. The compensation is divided to ‘upfront commission’ (paid shortly after Settlement) and ‘trailing commission’ (for the life time of the loan).

Some Brokers charge a small (sometimes even refundable) fee from the Borrowers.


While few mortgage brokers get paid a flat salary, some get paid a combination of salaries and bonuses. The salary ensures that mortgage brokers are paid for their work, even during times when few people want to purchase real estate. Most brokers make the bulk of their incomes through commissions, but the salary serves as a type of guarantee.

How Are we Different?

At Aligned Finance, we pay our brokers the same percentage on every deal, regardless of the lender. If there is any surplus, you will be the one to receive it. This ensures our interests are aligned and sets us apart from other mortgage brokers who receive different fee percentage from different lenders. In case you are interested, we can donate the surplus in your name to an Australian charity of your choice instead of giving it to you. For more info, please contact us.

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