A mortgage referral arrangement is a formal agreement between a professional (such as an accountant, real estate agent, financial planner, lawyer, or conveyancer) and a licensed mortgage broker, under which the professional introduces clients with lending needs to the broker in exchange for a referral fee when a loan settles.
How it works:
1. A professional identifies a client who has a lending need — a property purchase, refinance, equity release, or investment loan.
2. The professional introduces the client to the broker, typically providing the client’s name, contact details, and a brief description of their needs.
3. The broker contacts the client, conducts a full lending assessment, compares options across their lender panel, and processes the loan application.
4. When the loan settles, the broker pays the referring professional an agreed referral fee.
Key requirements under Australian law:
– The arrangement must be documented in a written agreement
– The referring professional must disclose the arrangement to the client
– The referring professional must not provide credit advice — their role is introduction only
– The broker remains responsible for all credit assessment, compliance, and recommendation
For the referring professional, the arrangement requires no finance licence and involves minimal ongoing effort beyond the initial introduction. It is one of the most accessible additional income streams available to professionals in client-facing roles.
