What’s the average salary for an Australian mortgage broker?

The average annual up-front and trail remuneration of a mortgage broker reached $133,365 for the period spanning April 2018 through September 2018, according to the Mortgage & Finance Association of Australia’s 7th Edition of Industry Intelligence Service. This represents a 0.43% increase over the previous six-month reporting period, and the average has remained relatively consistent since October 2016.

This figure includes operating costs and applicable taxes, and, for sole operators, any staff costs as well. Prior to costs, the average annual up-front commission per broker came to $74,706 during this same period.

Meanwhile, the annual gross trail commission reached $58,659. This accounts for a 5.49% jump from the previous reporting period.

It should also be mentioned that inactive brokers – those who did not settle a home loan – still represented a significant portion of the broker population at 15%. This number remains relatively unchanged, but indicates a need for brokers to remain competitive.

These figures come with a big caveat though, as a host of factors will influence the annual average salary for mortgage brokers.

A Growing Industry and a Widening Scope

While some industry associations have calculated the average mortgage broker annual salary, it should be noted that this number isn’t necessarily written in stone and can vary greatly. Differences arise because of a number of factors that ultimately play a role in determining an individual mortgage broker’s remuneration, such as commissions, fees and regional variances.

The mortgage broker landscape continues to get more competitive each year. The MFAA noted that the population of mortgage brokers surpassed 17,000 people during the six-month period spanning April 2018 to September 2018. This represents a new high, and experts expect this number to keep growing.

What’s causing this surge in people turning to mortgage brokering? While passion for the real estate sector certainly accounts for some growth, the average annual mortgage broker salary no doubt plays a big role in drawing people to the job.

Factors that Determine Salary

Like any other industry, individual circumstances such as experience, personal objectives and relevant skills will also affect salary outcomes. These notwithstanding, the main factor driving a mortgage broker’s salary will be the number of loans settled. The more loans settled, the greater the chances for accruing more commissions.

Some of the commissions and fees include:


Commissions account for a sizeable portion of a mortgage broker’s income. Two main commissions exist – up-front and trailing – while bonus commissions might also contribute to a broker’s salary.

  • Upfront Commission: Upon settling a home loan, a mortgage broker receives the upfront commission. These rates can range anywhere from around 0.5% 0.7%.
  • Trail Commission: As a borrower pays the loan on time, brokers receive a trail commission based on the loan’s balance. Rates for trail commissions can vary between around 0.1% (or lower, sometimes) to around 0.35%. Keep in mind that because this commission correlates to the remaining loan balance, it will continue to decline as the borrower pays off the loan.

Mortgage brokers who partner with a reputable specialist finance business gain access to a wide range of commission models that best suit their strategies. Whether it’s new industry members or experienced veterans, a flexible commission model can maximise returns while minimising expenses.

Finder’s fee

Sometimes referred to as a referral fee or as referral income, this is a fee earned by a mortgage broker for facilitating a transaction. While this can sometimes boost the annual salary, there are times a broker might end up paying a finder’s fee to a colleague as opposed to receiving one. Just remember, though, that this pays out in other more intangible ways by creating a network of peers that can return the favour down the road.

Origination fee

Another factor involved in determining a mortgage broker’s annual income is the origination fee. This upfront fee serves as compensation for putting a loan in place. Quoted as a percentage of the loan’s total, their rates typically run around 0.5-1% of the mortgage.

Regional Factors

Different regions yield varying income levels. For instance, on average, mortgage brokers working in Victoria earn higher salaries than those in New South Wales, with a difference of $125,000 to $80,000, respectively, according to the employment and recruitment company Neuvoo.

This most likely correlates with the fact that Victoria stands out as the only state to experience consistent period-on-period population share growth since 2015, Neuvoo stated.While there might be more competition for brokers in Victoria, this arises from the number of opportunities available there.

How to Calculate Mortgage Broker Commissions

Reading through all the numerical variables involved in determining a mortgage broker’s actual annual salary might make calculating salary estimates seem difficult. It’s a fairly straightforward projection once all the numbers are known, and there are easy ways for both current and prospective mortgage brokers to figure out salary estimates using these very factors.

For example, an online Potential Earnings Calculator for mortgage brokers will factor in the average and actual number of loans settled per month, along with the average up-front, trailing and insurance commissions. Using this data, it’s possible to deduce potential earnings estimates.

While these are only estimates, and do not represent any concrete figures, the numbers can serve as a guidepost. As noted, regional factors play a big role in these calculations. It might be tempting to try brokering mortgages in an area with a larger pool of mortgages, but this might include a greater number of brokers in competition for those same loans. On the other hand, a region with smaller but fewer competitors might be a more lucrative route for some.

How to Boost Earnings

The best part of all these commissions and fees is that mortgage brokers have plenty of opportunities to increase their earnings. Brokers who continue to adapt and pursue greater market share will remain ahead of the curve and boost their salaries.

One potential way to stay ahead of the curve is by joining a member program that offers a pathway to commercial success. Partnering with a financial group can provide mortgage brokers with:

  • Top Tier Commissions.
  • Access to more than 40 lenders.
  • Support and mentoring.
  • CRM & software capabilities and more.
  • With access to such great benefits, mortgage brokers have the tools they need to succeed and truly maximise their income.

To learn more about broker options, request an information pack from Redrock.