Many Australian borrowers do not pay a separate broker service fee for a standard residential loan, because the lender pays commission. That does not mean every broker or every scenario is automatically free.
How lender commission usually works
For many settled residential loans, the lender pays the broker an upfront commission and may pay an ongoing trail commission. These arrangements should be disclosed in the credit proposal documents.
Commission is paid by the lender, but brokers still have legal obligations when providing credit assistance to consumers, including relevant best-interests obligations.
When a client fee may apply
A broker may charge a service, engagement, application or commercial-finance fee in some circumstances. Examples can include complex work, small loan sizes, specialised transactions or situations where lender commission is unavailable.
The existence, amount and timing of a fee should be explained before you agree to proceed.
- Ask whether any client fee applies
- Request the credit guide and proposal disclosure
- Understand any cancellation or clawback-related terms
- Check whether valuation or lender fees are separate
Free consultation is different
An obligation-free first conversation means you can discuss the scenario without committing to an application. It does not by itself confirm that every later service is fee-free.
Use the first discussion to ask exactly how the broker is paid for your proposed transaction.
Compare total borrowing cost
Even where no broker fee is charged, the loan itself may include interest, application, package, valuation, settlement or ongoing fees. A useful recommendation considers total cost, relevant features and suitability.
Common questions
Is Rockvale Finance a free mortgage broker?+
The initial consultation is obligation-free. Any fee that could apply to a specific transaction should be confirmed and disclosed before you proceed; do not rely on a generic website statement.
Do lenders charge more when I use a broker?+
Product pricing and availability can vary. Compare the actual loan rate, fees, features and total cost offered for your circumstances.
Should commission be disclosed?+
Relevant commissions, fees and costs should be disclosed through the required credit documents before proceeding.
This guide does not consider your objectives, financial situation or needs. Lending policies, government programs and thresholds can change. Obtain current credit, legal, tax or financial advice as appropriate.