How does a Broker get paid?
In most cases, a mortgage broker earns a one-time commission from the lender known as the ‘Upfront Commission’. The amount can vary from 0.50% to about 1%, depending on the type of mortgage they sell and what the lender is offering. If you sign a $300,000 mortgage, your broker would earn about $1,800, based on a commission of 0.60%.
Brokers can also receive recurring commission also known as ‘trailing commission’. This payment is a recurring commission that is calculated based on the remaining loan amount each year, which is paid to them on a monthly basis. While some lenders offer no ongoing commission, others offer an ongoing commission of 0.1-0.2% based on the remaining balance of the loan.
Brokers can also receive recurring commission also known as ‘trailing commission’. This payment is a recurring commission that is calculated based on the remaining loan amount each year, which is paid to them on a monthly basis. While some lenders offer no ongoing commission, others offer an ongoing commission of 0.1-0.2% based on the remaining balance of the loan.
Find us on
Call us
1300 978 051
Home Loan variable interest rate of 5.89% per annum is as at 3 October 2023 and is subject to borrower meeting the lender's criteria, terms and conditions and loan to value ratio ('LVR') requirements. This rate of 5.89% per annum is based on a variable rate home loan of greater than $50,000 and not exceeding a LVR of 80%. The comparison rate of 5.91% per annum is as at 3 October 2023 and is based on a secured loan of $150,000 over a term of 25 years. This comparison rate is true only for the example or examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Lending criteria, fees and conditions apply. Rates, fees and conditions are indicative and subject to change without notice. Loan Studio Pty Ltd (ABN 97 146 606 135) is an authorised credit representative (390870) of Port Group Pty Ltd (Australian Credit Licence Number 389460.
