How a mortgage broker is remunerated?
This is a really good question we are asked all the time, even from friends and family. It’s a very important question and one that needs to answered very early in the conversation.
When a mortgage broker submits an application to a lender and the application settles, the lender will pay a commission based on the size of the loan to the Aggregator who then pays the mortgage broker.
Who is an aggregator?
An Aggregator is a separate company to a lender and a broker, the Aggregator is the one which enters into an enterprise agreement with the banks / lenders. And it is who the banks/lenders negotiate the terms and commission payable.
The aggregator then enters the market place to find mortgage brokers to operate under it’s model and enters into separate enterprise agreements with the broker.