Are Mortgage Brokers Free
Wondering about are mortgage brokers free? Many Australians are surprised to learn that mortgage broker services are typically free for borrowers. Here's how broker fees work.
Are Mortgage Brokers Free?
In most cases, yes! Mortgage brokers are paid by the lender when your loan settles, not by you. This means you get expert advice and access to multiple lenders at no direct cost.
How Brokers Get Paid
- Upfront Commission: Lenders pay brokers approximately 0.5-0.7% of the loan amount when your loan settles
- Trail Commission: Ongoing payments of around 0.15-0.25% annually for the life of the loan
When Might There Be Fees?
Some situations where fees may apply:
- Complex commercial transactions
- Specialist lending scenarios
- If you request services outside normal broker duties
Any fees must be disclosed upfront before you engage the broker's services.
The Value of Using a Broker
Even though brokers are paid by lenders, they're legally obligated to act in your best interests. A good broker can save you money through better rates and suitable loan features.
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With direct experience helping Australians secure home loans, car finance, and business funding, Ricky founded Esteb and Co to bring transparency and technology to mortgage broking.