Mortgage Broker Referral Fee Calculator

Yes. The National Consumer Credit Protection Act allows credit referral arrangements provided the referrer does not provide credit assistance (they cannot recommend a specific lender or loan product, advise on loan structure, or assist with the application). Pure introducer arrangements are explicitly permitted under section 8 of the NCCP. The broker must disclose the referral fee to the borrower in writing.

Australian residential broker commissions are typically 0.5% to 0.7% upfront plus 0.15% to 0.275% per year trail commission, paid by the lender (not the borrower). On a $600,000 loan with 0.6% upfront the broker earns $3,600 in year one plus around $1,200 per year in trail. Lifetime broker income on a typical 5-year held loan is around $9,000.

Yes, with disclosure. The agent must disclose the referral fee to the buyer in writing before the introduction is made. Some states (NSW, VIC) require specific disclosure language. The broker must not pay the agent for providing credit assistance - only for the introduction. Agents who recommend specific lenders or loan products are providing credit assistance and risk breaching the NCCP.

A written agreement between a referrer (real estate agent, accountant, financial planner, or other professional) and a mortgage broker specifying: the referral fee percentage and trail share, what counts as a qualifying referral, the disclosure obligation to the borrower, payment timing, and the duration of the arrangement. Most brokers have a template ready - if they do not, that is a sign to find a different broker.

Yes, if the receiving party is GST-registered. The fee carries 10% GST in addition to the headline amount. The broker claims it back as input tax credit. Most professional referrers (agents, accountants, financial planners) operate through GST-registered entities so the GST treatment is automatic.