Mortgage broker income in Australia varies significantly based on settlement volume, trail book size, business model, and experience. Understanding the income structure is important for both aspiring brokers and professionals considering the career.
Commission structure. Brokers earn an upfront commission from the lender at settlement (typically 0.55%–0.65% of the loan amount) and an ongoing trail commission (0.10%–0.20% per annum on the outstanding loan balance). Upfront commissions are paid through the broker’s aggregator minus any aggregator fee. Clawback provisions apply if the loan is repaid within 18–24 months.
Entry level. New brokers writing $10M–$20M per year in their first 2 years can expect gross commissions of approximately $55,000–$130,000, before aggregator fees, business expenses, and tax.
Established brokers. Experienced brokers writing $40M–$80M annually, with an established trail book generating passive income, can earn $200,000–$500,000+ in gross commission income depending on their loan book size and mix.
Trail book value. A well-maintained loan book is a significant asset. A $50M loan book generating 0.15% trail produces approximately $75,000 per year in passive income. Trail books can be sold on exit, typically for 1.5–2.5x annual trail.
Additional income. Brokers who participate in investment property referral programs can generate additional referral fee income on top of their loan commission revenue.
