When a mortgage adviser arranges your mortgage with a bank they will get paid a commission.
Most banks will pay a commission which is calculated as a percentage of the loan size, so on small loans the commission is minimal but on larger loans the commission can see the broker being paid quite well. The commissions that banks pay can vary between about 0.45% to 0.90% and these are paid to the broker group. Some banks also pay the broker groups an ongoing commission or a fee for maintaining the mortgages.
The individual mortgage adviser that you work with would often receive a share of the overall commission received by the broker group and this will vary a lot. Some brokers receive no commission and instead are paid a salary or a base retainer with a smaller commission component.
