Mortgage aggregator fees in Australia, explained
Mortgage aggregator fees usually have two parts: a fixed cost you pay to the aggregator, and a share of your commission the aggregator keeps. Some charge a flat monthly fee and let you keep all your commission. Others take a percentage of every dollar you earn. The headline figure is rarely the full cost, and the gap between the two models grows every year your book does.
After twenty years on both sides of the table, first as a broker and then inside the banks, the thing I see brokers miss most is simple: they compare the number they're quoted, not the number they actually keep. This guide fixes that.
How do mortgage aggregator fees actually work?
An aggregator sits between you and the lenders. It holds the credit licence you operate under, gives you access to a lender panel, and provides compliance, software and support. In return, it charges you in one or both of these ways:
A fixed fee. A set monthly or annual amount, regardless of how much you write.
A commission share. A percentage of the upfront and trail commission the lender pays on your loans.
To understand any fee model, you first need the numbers underneath it. As an industry benchmark, lenders currently pay brokers around 0.65% of the loan amount upfront (including GST) and around 0.165% per year in trail (including GST) on the outstanding balance. Those are the dollars your aggregator's fee is calculated against.
The four fee models, compared
Almost every aggregator in Australia uses a version of one of these.
1. Flat fee, keep 100% of commission. You pay a fixed amount and retain every dollar of upfront and trail. Your cost is predictable and does not rise as you write more. Flat monthly fees in the market generally start from around $1,000 per month.
2. Percentage split. The aggregator keeps a share of your commission and passes on the rest. Splits vary widely, from roughly 5% at the low end to as much as 50% once you include every deduction. The more you write, the more you pay, because the fee is a percentage of a growing number.
3. Tiered or graduated split. A split that improves as your volume climbs. It looks generous at scale, but the crossover point where it beats a flat fee is often higher than brokers expect.
4. Hybrid. A lower monthly fee plus a smaller split, or a split that converts to a flat fee above a certain trail threshold. Useful to model carefully, because the true cost depends entirely on where your book sits.
The key question is not "which model is cheapest?" It's "which model is cheapest for my book, at my volume, over the next five years?" A split that feels fine on a small book can quietly become your single largest business expense as you grow.
What is a typical commission split?
There is no single standard, which is part of the problem. Across the market, the aggregator's share of a broker's commission commonly falls somewhere between 5% and 50%, depending on the aggregator, your volume, and the specific deductions in the agreement. Many brokers are surprised to find, once every line item is counted, that they are handing over 20% or more of what they earn.
Here's the part that matters. A percentage split scales with your success. Write more, earn more, and the aggregator's cut grows in exact proportion. A flat fee does the opposite: the more you write, the smaller your fee becomes as a share of your income. That single difference is why the model you choose early can cost or save you tens of thousands of dollars a year later.
A real example: what a percentage split actually costs
Percentages feel small. Dollars don't. So let's run a realistic broker and see what the two models do to the same income.
Take a broker settling $40 million in loans a year. At an upfront commission of 0.65%, that's $260,000 in upfront commission in a single year, before trail. Now hold that one number still and compare the two models against it.
Under a 20% split: the aggregator keeps $52,000 of that upfront, every year. Hold that volume for five years and you've handed over $260,000 from upfront alone, and the same 20% is quietly taken from your growing trail book on top.
Under a flat fee of $1,500 a month: your cost is $18,000 a year, or $90,000 over five years, and it does not move as your book grows.
Same broker. Same loans. The difference over five years, on upfront alone, is roughly $170,000 left in your pocket instead of the aggregator's. Add the trail the split also takes, and the real gap is wider.
This is the mechanism that matters. A split is a tax on your success that scales with everything you write. A flat fee is a fixed cost you outgrow. The bigger and better your book gets, the more a percentage model charges you to stay in it. Your exact figures will vary with your commission rates, your split and your trail book. The pattern does not.
The fees nobody quotes you
The split or monthly fee is only the headline. The real cost of an aggregator is the full stack, and several items rarely make it into the sales conversation:
Compliance and PI insurance. Often billed separately, commonly a few hundred dollars a month combined.
Credit-check and bureau fees. Per-check costs that add up across a busy pipeline.
Software and CRM levies. Sometimes included, sometimes an add-on.
Marketing or program fees. Optional-sounding line items that quietly become recurring.
Exit or transfer costs. What it costs to leave, which you only discover when you try to.
When you compare aggregators, insist on the total monthly cost with every line item included. A low split with a long list of add-ons can end up dearer than a higher flat fee with nothing hidden underneath it.
What your aggregator fee actually buys
None of this means aggregator fees are a rort. You're paying for real things, and a good aggregator earns its keep. It's worth being just as clear about what you're buying:
Lender panel access. The accreditations and volume relationships that let you write across 60, 70 or more lenders.
The credit licence and compliance umbrella. Operating as a credit representative under the aggregator's ACL, with the compliance systems, audits and regulatory updates that keep you on the right side of the law.
PI insurance and the lodgement platform. Professional indemnity cover and the CRM and loan-lodgement software you work in every day.
Training, mentoring and support. Onboarding, ongoing development, and a BDM you can actually call.
Marketing and tools. Brand, lead tools and templates, to varying degrees.
The question is not whether these have value. They do. The question is whether the pricing model still matches that value as you grow. The panel, the licence and the software cost the aggregator roughly the same whether you write $10 million or $50 million a year. Under a flat fee, so does your bill. Under a split, you pay more for the same services every year you succeed. That mismatch is the thing worth examining before you sign anything.
Don't forget clawbacks
Clawbacks aren't an aggregator fee, but they hit the same bank account, so they belong in any honest cost picture. If a client repays or refinances early, the lender reclaims some or all of the upfront commission from you, typically on a sliding scale across the first 12 to 24 months. Separately, trail generally stops once a loan falls into arrears, often after 15, 30 or 60 days of missed payments depending on the lender.
Your aggregator model interacts with this. Under a split, you have already given away a share of an upfront that can still be clawed back in full from you. Understanding where clawback risk sits is part of understanding what you truly keep.
How to work out what an aggregator really costs you
Ignore the headline. Work out your net position: total commission earned, minus the aggregator's share, minus every fixed and hidden fee, across a realistic five-year view of your book. Then compare that number, not the brochure number, across your options.
That's exactly what our commission savings calculator does. Put in your settlement volume and it shows what a flat-fee model leaves in your pocket versus a percentage split over five years. For most established brokers, the number is larger than they expect, because a split quietly taxes every year of growth.
You built the book. The fee model you choose decides how much of it you keep.
Questions to ask an aggregator about fees
Before you sign with any aggregator, get clear answers to these. Vague answers are themselves an answer.
Is this a flat fee or a percentage split? If it's a split, what exactly is it a percentage of, upfront only, or upfront and trail?
What is the total monthly cost with every line item included: compliance, PI insurance, software, credit checks, and any marketing or program fees?
Does my cost change as my volume grows, and if so, how?
Do I keep 100% of my trail, and what happens to my trail book if I leave?
Am I locked into a contract? What's the notice period, and is there any exit or transfer cost?
Are there minimum volume requirements, or any circumstances where the aggregator claws back its own fees or share?
Put the answers side by side as total dollars over a realistic five-year view, not as headline percentages. That's the only comparison that tells you the truth.
Frequently asked questions
How much do mortgage aggregators charge in Australia?
Either a flat monthly fee (generally from around $1,000 per month) with you keeping all your commission, or a percentage of your commission that commonly ranges from about 5% to 50% once all deductions are counted. Most also charge separately for compliance, PI insurance and software.
Do aggregators take a cut of my commission?
Under a percentage-split model, yes, on both upfront and trail. Under a flat-fee model, no. You pay the fixed fee and keep 100% of your commission.
Is a flat fee or a commission split better?
It depends on your volume. A split can suit a small or new book, but because the fee grows with everything you write, a flat fee usually wins as your book scales. The right way to decide is to compare your five-year net position under each.
Do I still pay the aggregator if I don't settle any loans in a month?
Under a flat fee, yes, it's a fixed cost. Under a pure split there's no commission to share that month, though any separate fixed charges such as software or compliance may still apply.
Can I negotiate my commission split?
Sometimes, particularly at higher volumes. But a negotiated split still grows with your book. A flat fee removes the need to negotiate at all.
What's the difference between an aggregator fee and a franchise fee?
An aggregator gives you licensing, lender access and support while you run your own brand and business. A franchise typically adds brand, leads and a set operating model in exchange for a larger share of your revenue. Franchise arrangements usually cost more and leave you with less independence.
What is a clawback?
When a client repays or refinances early, the lender reclaims some or all of your upfront commission, usually on a sliding scale over the first 12 to 24 months.
Are aggregator fees tax deductible?
Generally yes, as a business expense, but confirm your specific situation with your accountant.
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