16 May 2026 Mortgage Broker Fees Explained in South East Melbourne, The 2026 Guide
Most South East Melbourne mortgage brokers charge borrowers absolutely nothing. If you’ve been putting off speaking to a broker because you’re worried about upfront fees or ongoing costs, that concern is keeping you from what could be thousands of dollars in savings through better lender selection.
The reality is that mortgage brokers in Australia work differently to most other service providers. While your accountant, solicitor, or financial planner typically charges you directly, mortgage brokers are paid by the lender after your loan settles, meaning the service is free to you. Whether you’re buying in Toorak – Cheltenham or St Kilda, understanding exactly how broker fees work helps you make a more informed choice about your home loan.
EverLend helps South East Melbourne homeowners understand their broker options and compare loans from 60+ lenders, completely free of charge.
Here’s what you need to know about mortgage broker costs before you commit to any lender.
Key takeaways
- Most mortgage brokers in South East Melbourne charge borrowers zero fees.
- Brokers are paid by the lender via upfront and trail commission after settlement.
- Using a broker costs no more than going directly to a bank.
Do mortgage brokers charge fees to borrowers?
No — the vast majority of mortgage brokers in South East Melbourne charge borrowers nothing. Brokers are typically paid by the lender through commissions after your loan settles, which means you receive the broker’s service at no direct cost. This commission structure has been standard across the Australian mortgage industry for decades and allows borrowers to access professional guidance without upfront fees.
How do mortgage brokers get paid in South East Melbourne?
Mortgage brokers in South East Melbourne are paid entirely by the lender, not by you. Here’s exactly how it works:
- ›Upfront commission: when your loan settles, the lender pays the broker a percentage of the loan amount, typically between 0.60% and 0.70% of the loan value. On an $800,000 loan, this represents approximately $4,800 to $5,600 to the broker.
- ›Trail commission: the broker receives a smaller ongoing payment (around 0.15% to 0.25% annually) for the life of the loan, as long as it remains active with that lender. This creates an incentive for brokers to ensure you’re placed with a suitable lender long-term.
- ›No borrower fees: because the lender pays the broker directly, most brokers charge borrowers $0 in upfront fees, ongoing fees, or consultation costs.
- ›ASIC disclosure: brokers are required by law to disclose their commission structure to you before you sign any loan documents. This transparency ensures you know exactly how your broker is compensated.
$0
What most South East Melbourne borrowers pay to use a mortgage broker — the lender pays the commission after settlement.
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How does the mortgage broker process work from start to finish?
Step 1: Talk to us
Get in touch and we assess your situation, explain our service, and confirm there are no upfront costs or consultation fees. We’re paid by the lender after settlement, not by you.
Step 2: Full commission disclosure
We provide you with a written disclosure statement that shows exactly how much commission we receive from each lender. This is required by law and ensures complete transparency about our compensation structure.
Step 3: Lender comparison across 60+ options
We compare your options across our full panel of banks, credit unions, and specialist lenders. Our commission doesn’t vary significantly between lenders, so we focus on finding the best fit for your situation.
Step 4: Application lodgement
We lodge your application with the chosen lender and manage the process through to approval. You pay nothing during this stage — our work is covered by the future commission payment.
Step 5: Settlement and commission payment
When your loan settles, the lender pays us the upfront commission. Trail commission begins monthly after settlement. You’ve received professional service throughout without any direct cost.
Step 6: Ongoing support at no cost
We continue to provide support for refinancing, rate reviews, and policy changes throughout the life of your loan. Trail commission ensures we maintain a relationship, not just complete a transaction.
What mistakes do South East Melbourne borrowers make with broker fees?
The biggest mistake is assuming all brokers charge consultation fees upfront. While some boutique or specialist brokers do charge for their service, the vast majority work entirely on lender commission, meaning you get professional guidance at no cost. Don’t let fee concerns prevent you from accessing broker expertise.
Another common error is choosing a bank directly because you think it will be cheaper than using a broker. In most cases, the bank offers the same rate whether you approach them directly or through a broker. The difference is that the broker can also show you what 59 other lenders might offer for the same situation.
Are there situations where a mortgage broker does charge fees?
Yes, a small number of mortgage brokers in Australia do charge borrowers directly, typically in these situations:
- ›Complex commercial lending: commercial property loans, development finance, and business lending sometimes involve broker fees due to the specialised nature and time investment required.
- ›Boutique advisory services: some high-end brokers position themselves as fee-for-service advisors and charge consultation fees alongside or instead of lender commissions.
- ›Difficult credit situations: brokers working with borrowers who have significant credit issues might charge a fee due to the additional work required and lower success rates.
- ›Specialist SMSF lending: SMSF loans sometimes involve broker fees due to the complex structuring and compliance requirements.
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Frequently Asked Questions
Do I pay anything upfront to use a mortgage broker in South East Melbourne?
No — most mortgage brokers in South East Melbourne charge borrowers nothing upfront. Brokers are paid by the lender after your loan settles, so the service is free to you.
Will using a broker make my home loan more expensive?
No — lenders offer the same rates whether you approach them directly or through a broker. The broker’s commission is paid separately by the lender and doesn’t affect your interest rate or loan terms.
What’s the difference between upfront commission and trail commission on a mortgage broker’s payment?
Upfront commission is paid when your loan settles, typically 0.60% to 0.70% of the loan amount. Trail commission is a smaller ongoing payment, around 0.15% to 0.25% annually, for the life of the loan.
Do mortgage brokers push certain lenders because of higher commissions?
Commission rates are fairly standard across major lenders, so there’s minimal financial incentive to favour one lender over another. Brokers are more focused on finding a suitable long-term match to maintain trail commissions.
What should I do if a South East Melbourne broker charges me a fee?
Some brokers do charge fees for complex situations or specialised services. Any fees must be disclosed upfront and in writing before you proceed — never agree to work with a broker whose fee structure isn’t clear.
Should I use a mortgage broker or go directly to my bank?
A mortgage broker, every time. Your bank can only offer their own products, while a broker compares options across 60+ lenders to find the best fit for your situation. The service costs you nothing extra.
How do I know if a mortgage broker in South East Melbourne is reputable?
Check they hold an Australian Credit Licence or are an authorised representative of a licensee. They should provide clear fee disclosure, explain their commission structure, and be a member of a professional body like the MFAA or FBAA.
Your Next Steps
Understanding exactly how mortgage broker fees work puts you in control of your lending decision. Most South East Melbourne brokers charge you nothing while providing access to 60+ lenders, which means you get professional guidance and broader choice at no additional cost compared to approaching a bank directly.
Ready to find out what a free broker comparison looks like for your situation? Contact the EverLend team for a free consultation or call 03 7036 3356. We’ll explain exactly how our service works, confirm there are no fees to you, and compare your options across our full lender panel.
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External Resources
EverLend · St Kilda and South East Melbourne · General information only – this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions. · Last updated 16 July 2026