A record 81% of new Australian home loans were settled through mortgage brokers in the March 2026 quarter, according to the MFAA — up from around 55% just eight years ago. Australia is now one of only three countries in the world where brokers arrange more than 8 in 10 mortgages. If you’re one of the many North Shore borrowers thinking of using a broker for the first time, the natural question is: what does a mortgage broker actually cost?
The short answer: usually nothing (to you)
For a standard residential home loan in Australia, most mortgage brokers — including Wonderful Global — do not charge the borrower a fee. The broker is paid by the lender you end up choosing, not by you. You get the comparison work, the application preparation, the lender negotiation and the follow-through to settlement without a bill.
So how does the broker get paid?
Lenders pay brokers two types of commission:
- Upfront commission — typically around 0.5%–0.7% of the loan amount (plus GST), paid by the lender once the loan settles.
- Trail commission — a small ongoing percentage, typically around 0.15%–0.3% per year of the remaining balance, paid while the loan stays in place and performing.
Two things matter here. First, these commissions are built into the lender’s normal cost of distribution — the same way a bank pays for its branches and staff. You do not get a lower interest rate by going to the bank directly; in fact brokers can often access pricing discounts that aren’t advertised in branch. Second, commissions must be disclosed to you before you proceed, in the broker’s credit guide and credit proposal, so you can see exactly what the broker earns from your loan.
When might a fee apply?
Some situations fall outside the standard commission model, and a broker may quote a fee-for-service — for example very small loan amounts, some commercial or short-term lending, or highly complex structures. Any such fee must be disclosed and agreed in writing before you commit. If a broker can’t clearly explain what you’ll pay and when, ask more questions.
Why brokers must act in your best interests — banks don’t have to
Since 2021, mortgage brokers have been bound by a legal Best Interests Duty: when we recommend a loan, we’re legally required to put your interests first. A bank lender selling you their own product carries no equivalent duty — they can only offer you what’s on their own shelf. That legal difference, combined with access to dozens of lenders, is a big part of why the broker share of the market keeps climbing.
What you should expect for “free”
A good broker earns their commission. Working with borrowers across Chatswood, Willoughby, Artarmon, St Leonards, Lane Cove and Gordon, we compare serviceability and pricing across a wide lender panel, structure the application so it fits the lender’s policy the first time, handle the paperwork and lodgement, chase the lender for you, and review your rate after settlement — including when it’s time to consider refinancing.
Talk to us — the first conversation is free too
Wonderful Global is a Chatswood-based mortgage broker serving Sydney’s North Shore. We’re available 24/7 and aim to provide a solution within 24 hours of receiving your documents, with service in English, Mandarin and Cantonese. Call +61 404 838 365 or contact us to find out what your options really cost — and what they could save you.
This article is general information only and does not take your personal circumstances into account. Consider whether the information is right for you before acting on it.