How do mortgage brokers get paid?

How do mortgage brokers get paid?

One of the most common questions we hear is: how do mortgage brokers get paid? In general, brokers may earn money through a combination of lender commission (paid when a mortgage completes) and, in some cases, a fee charged to the customer for the advice and arranging work.

What’s important is that you should be told clearly how you’ll be charged before you commit to anything, so you can understand the total cost and what you’re paying for.

Do mortgage brokers charge fees?

Some do, but not all.

A broker fee (where it applies) is usually intended to cover the work involved in arranging your mortgage, such as:

• assessing your circumstances and affordability
• searching the market for suitable options
• helping you complete the application accurately
• liaising with lenders and other parties during the process
• supporting you through to completion

Fees can be structured in different ways, for example:

• upfront (before the application is submitted)
• on application
• on completion
• fixed or based on complexity

Because fees vary, the key is to make sure you receive a clear breakdown of costs before proceeding.

How much do mortgage brokers charge?

There’s no single standard fee across the market. Broker charges can differ depending on factors such as:

• the size of the mortgage
• how complex your situation is
• the amount of work needed to source and manage the application
• whether the broker is working across a wider range of lenders or a limited set

In practice, more complex cases often require more time and specialist input, which can affect the fee.

Are there fee-free mortgage brokers?

Yes. Some brokers offer fee-free advice for certain customers or mortgage types. In these cases, the broker may rely on commission from the lender paid after the mortgage completes.

Fee-free arrangements are more likely to work well when your application is relatively straightforward—for example, where income and circumstances are easier to verify and the mortgage can be matched to mainstream criteria.

Fee-free vs paid brokers: which is best?

There isn’t a universal “best” option. The right approach depends on your circumstances and what you value.

• Fee-free brokers may suit you if your case is straightforward and you’re comfortable with a model where the broker’s income is primarily linked to lender commission.
• Paid brokers may suit you if your case is more complex and you want to ensure the advice and arranging work is properly resourced, regardless of whether commission is available.

Either way, what matters most is choosing a broker who can explain the process clearly and recommend a mortgage that fits your needs.

How do mortgage brokers earn their money?

Most brokers earn money from the regulated mortgage advice and arranging process. Typically, that includes:

• reviewing your income, outgoings and affordability
• comparing products from across the market (where applicable)
• assessing lender criteria and eligibility
• preparing and presenting your application
• guiding you through underwriting and the steps to completion

If your mortgage completes, lenders may pay the broker a commission. If a customer fee applies, it’s usually agreed in advance and tied to the work undertaken.

Do mortgage brokers lend money?

No. Mortgage brokers don’t lend money. Their role is to help you find a suitable lender and mortgage product, and to manage the application process on your behalf.

If you’d like, we can also cover related questions such as what to expect from a broker appointment or how to compare broker fees before you decide to proceed.