Broker cost
How much does a mortgage broker cost? Usually nothing.
The lender pays us when your loan settles. You get the advice, the market comparison, and someone in your corner — at no cost to you.
Written by Matt Edwards · Last updated May 2026
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The short answer
Most people pay exactly zero.
For the vast majority of home loans in New Zealand, a mortgage broker doesn't cost you anything. The bank or lender pays us a commission when your loan settles. You don't get a bill.
This surprises people. The assumption is that advice costs money, and it should. But the mortgage broking model in NZ works differently: the lender pays for the introduction, and you get the advice for free.
How brokers get paid
The commission model, explained simply.
- Upfront commission
- When your home loan settles, the bank pays your broker a one-off commission. It's calculated as a percentage of the loan amount — typically around 0.55% to 0.85%. On a $600,000 loan, that's roughly $3,300 to $5,100. The bank pays this. You don't.
- Trail commission
- For as long as your loan stays with that bank, the broker receives a small quarterly payment — usually around 0.15% to 0.20% per year of the remaining loan balance. This is what keeps brokers motivated to stay in touch and help you at refix time, not just at settlement.
- Clawback
- If you refinance to another bank within the first 18 to 27 months, the original bank claws back some or all of the commission from the broker. This means brokers have a strong incentive to put you with the right lender the first time — because switching early costs them.
The exceptions
When a broker might charge a fee.
Fees are uncommon, but they exist. The scenarios where a broker might charge you directly are:
- Non-bank lending — some non-bank lenders don't pay broker commission at all, or pay less than it costs to do the work. If we need to go outside the main banks, we'll discuss fees before we start.
- Very small loans — if the loan amount is low enough that the commission doesn't cover the work involved, a broker may charge a top-up fee. We'll tell you upfront.
- Complex applications — multi-entity structures, trust lending, or unusual situations that require significantly more work than a standard application.
If any fee applies, we'll tell you before we do any work. You'll never get a surprise invoice.
Direct vs broker
Going direct to a bank doesn't save you money.
A common concern is that using a broker means paying more for your loan. It doesn't. Banks offer the same rates to broker-introduced clients as they do to people who walk in the front door.
In fact, a broker can often negotiate a sharper rate. We place volume with multiple banks, and we know what's genuinely on the table — not just the advertised rate on the website.
The difference is that when you go direct, the bank only shows you their products. When you use a broker, you see the whole market. Same cost, more options.
FAQs
Questions about broker fees.
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