How do mortgage brokers get paid?

Mortgage brokers are paid for helping you apply for a mortgage and for providing advice and support throughout the process. The way that payment is structured can vary, so the most important thing as a home buyer is understanding who pays the broker and when.

In practice, broker remuneration usually falls into one (or a combination) of these models:

You pay a broker fee (fixed amount or percentage)
The lender pays commission (sometimes referred to as procuration or introduction fees)
A “fee-free” model where you don’t pay a fee, but the broker may still receive commission from the lender

Broker fees: the main types

Flat fees

Some brokers charge a fixed fee for their advice and service. This is often used where the expected work is broadly similar from one case to the next.

Percentage-based fees

Other brokers charge a fee linked to the mortgage amount. In these cases, the broker’s fee may increase or decrease depending on the size of the loan.

Mixed fee structures

Some brokers use a combination of fee types, depending on the complexity of the case and the services included.

“Fee-free” mortgage brokers: what it usually means

A “fee-free” broker typically means you don’t pay for the advice. Instead, the broker may earn money from the lender once the mortgage completes.

Even where you pay nothing, the broker’s income is still usually connected to the mortgage being arranged—often based on factors such as the loan size or product type. For that reason, transparency remains important: you should still be able to clearly understand how the broker is remunerated.

Lender commission: what it means

When a broker arranges a mortgage, the lender may pay the broker a commission for introducing the customer and securing the business.

Borrowers are often concerned that commission could affect recommendations. The key safeguard is not the label (commission, procuration, introduction fee), but whether the broker has explained:

whether you’ll pay anything
whether the broker also receives payment from the lender
when any payments are due

“Double dipping” and why transparency matters

You may hear the term “double dipping” to describe a situation where a broker charges the customer a fee and also receives commission from the lender.

It’s not automatically a sign that advice is wrong, but it does make full clarity essential. Before you proceed, it’s reasonable to understand:

whether you’re paying a broker fee
whether the broker will also receive lender commission
how both elements work in your specific case

When might you pay a broker?

If you are charged a fee, the timing can vary. Common approaches include:

Paying upfront before the broker submits the application
Paying after an offer is obtained
Paying on completion (or after the mortgage completes)

Knowing the timing helps you plan your cash flow and understand what happens at each stage.

What to ask your mortgage broker

To understand how you’ll be charged, consider asking questions such as:

What is the fee structure (flat fee, percentage, or fee-free)?
Will you receive any payment from the lender as well?
If there is a fee, how much is it and when is it due?
Will you provide the fee details in writing before you commit?

A clear explanation of remuneration makes it easier to compare broker services on a like-for-like basis.

Key takeaways

Mortgage brokers may be paid through customer fees, lender commission, or a fee-free model.
“Fee-free” usually means you don’t pay for advice, but the broker may still receive commission from the lender.
If a broker charges you and also earns commission, it’s often described as “double dipping”—the main protection is transparency.
The most useful focus is understanding who pays, how much, and when.

How do mortgage brokers get paid?