We get this question all the time: “So, how do mortgage brokers get paid?”

If you’re new to the home loan process — or even if you’ve used a bank before — it’s completely normal to wonder how mortgage brokers make their money, and whether there’s a catch.

The short answer? In most cases, our service is completely free for you, and we’re paid by the lender once your loan settles. But there’s a little more to it than that.

In this blog, we’ll break down how mortgage broker commissions work, how it affects (or doesn’t affect) your loan, and why brokers like Blackburne act in your best interest — every single time.

Who Pays a Mortgage Broker?

In Australia, mortgage brokers are generally paid a commission by the lender once your loan has been settled. You, the borrower, don’t pay us a fee for the vast majority of loans.

There are two main types of broker commissions:

1. Upfront Commission

 This is a one-time payment from the lender when your loan settles. It’s usually a small percentage of the loan amount — typically between 0.715%

So, for a $500,000 loan, the lender might pay a broker around $3,575

2. Trail Commission

 This is a smaller ongoing payment the lender makes to the broker over the life of the loan, as long as it stays active and in good standing. It’s typically around 0.166% per year of the remaining loan balance.

Note: These payments come from the lender’s marketing and acquisition budget, not from your loan amount.

Why Would Lenders Pay a Broker?

It’s simple: brokers help lenders win business — without them needing to spend money on advertising, branch staff, or call centres.

By outsourcing customer acquisition to brokers, banks can:

• Get high-quality, fully packaged loan applications
• Access buyers they might not otherwise reach
• Save time and overheads on customer support

It’s a win-win: you get choice and expert help, and they get a new customer.

Do Mortgage Brokers Get Paid More for Recommending Certain Lenders?

Not anymore. Under Australia’s Best Interests Duty (BID) — a legal requirement introduced in 2021 — mortgage brokers must recommend loans that are in your best interests, not theirs or the lender’s.

That means:

✅ We can’t be influenced by commission differences
✅ We must provide written explanations for our recommendations
✅ We must explore multiple suitable options for you
✅ We’re required to act in your best interest — always

At Blackburne, we take this responsibility seriously. We access over 50+ lenders to find one that genuinely suits your goals, whether that’s the lowest rate, best features, or long-term flexibility.

Are There Ever Any Fees for Using a Broker?

In almost all cases, no — especially for standard residential home loans.

However, there are a few rare exceptions:

• Commercial or development loans
• Complex or non-conforming loans
• Bridging or short-term private funding

In these cases, a broker may charge a fee-for-service — but this is always disclosed upfront and agreed upon in writing before anything proceeds.

At Blackburne, transparency is non-negotiable. We’ll always explain exactly how we’re paid, and you’ll never be left guessing.

So, What’s the Catch?

There isn’t one. A good broker saves you:

• Time – we do the comparing, chasing, negotiating
• Money – we access deals you won’t always find online or through a branch
• Stress – we handle paperwork, follow-ups, and lender headaches

And best of all — for standard loans — you don’t pay a cent for it.

Why Work With a Broker Instead of Going Direct to a Bank?

How Blackburne Puts Your Best Interests First

We’re not here to push one lender or product. We’re here to guide you through the maze of options — whether you’re a first-home buyer, upgrader, investor or refinancer.

✅ No pressure, no fluff
✅ Fully transparent commission disclosures
✅ Ongoing support long after you get the keys
✅ Friendly Perth-based team who actually answer the phone

Got Questions About Mortgage Broker Costs? Ask Us Anything.

We’re here to demystify the process and help you make confident, informed choices — with zero obligation.