Money matters – How much do mortgage brokers get paid?

  • Staff Reporter | May 29, 2018
Mortgage Broking - Career Advice

The take-home pay of mortgage brokers varies wildly as the vast majority of brokers in Australia are operating on a number of commission-based remuneration systems.

Let's lay out the facts first - mortgage brokers surveyed by the MFAA counted average earnings at $142,000 each year before tax and operating costs. 

Upfront commissions

Mortgage broking is a commissions-based gig – meaning that the sky is really the limit when it comes to your earning potential. 


We are proud to employ personal finance experts who love what they do and passionate in their customer focus. We’re a pretty down to earth bunch as well – so you’ll never face the problem of being…
Clients will come to you for help connecting them with a lending solution that meets their needs. Taking a number of factors into consideration, you’ll make a product and lender recommendation and help the client with the application process. 

Once your client has signed up for a mortgage, you’ll receive a commission from the lender. Typically, this is somewhere between 0.3 to 0.5 percent of the total loan amount. 

Figures from the Australian Bureau of Statistics put the average mortgage signed in 2017 at around the $374,000 mark. So brokering a mortgage on this amount would see you paid $1,122 in commission at 0.3 percent. 

And when you look at the average mortgage price of the more expensive property markets in the country (looking at you, Sydney!) that commission can grow into several thousand dollars. 

Mortgage Brokers make an average of $142,000 per annum

Trailing commissions 

But it doesn’t end there! Most lenders will also pay mortgage brokers a trailing commission as a percentage of the remaining loan every year. The amount varies by lender, but, on average, the trailing commission is 0.01 to 0.03 percent. 

So for example, if that $374,000 average loan was paid down to $350,000 after one year, the broker would receive $700 for that first year (at 0.02 percent). Not too shabby for work you did the year prior. 

Industry data indicates that the average home loan is refinanced every four or five years, so you can expect to receive that trailing commission for this period. 

The MFAA member income report indicates that almost 40 percent of their members’ average $142,000 income was from trailing commissions. 

Business costs

Almost half of mortgage brokers are sole operators or work in small businesses with another broker. The MFAA reports that 56 percent of mortgage brokers work in offices of one or two brokers. They could be operating under their own brand or part of a franchise.

Small business can offer great benefits, but it does mean that you’ll be taking on your own operation costs; things like IT requirements, renting a business premise and taking on administration costs. 

There are also costs if you choose to become part of a franchise. Called “aggregators” these franchises usually provide software, access to lenders and commission-processing functions. Some will also provide a brand, leads and training.

Clawback fees

If your client refinances the loan that you brokered within a certain time period, the lender can take back the commission they paid to you, called a clawback. 

This time period varies by the loan provider, but is usually only a matter of months to a year. It’s estimated that only 1 to 2 percent of loans are subject to clawback each year, but it’s still something to keep in mind when you’re counting your pennies. 

Ready to start earning?

There are lots of reputable Registered Training Organisations in Australia that can help you complete a Certificate IV or Diploma level qualification in mortgage broking. Find a course that suits you!


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