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How much does a Mortgage Broker cost 2021

Average Price
$54.50 per hour

How much does Mortgage Broker cost?

Want to take out a mortgage but need some help figuring out costs? Read our handy guide on how much it will cost to work with a mortgage advisor.

What does a Mortgage Advisor do? 

A mortgage advisor (sometimes referred to as a mortgage broker), is a qualified professional who will be able to help you choose the best mortgage based on a deep understanding of the market. 

Unlike traditional lenders, mortgage advisors are not tied to a particular institution. Instead, they have access to a broad network of deals and may also be able to offer special incentives that can save you time and money.

Unlike a lender, a mortgage advisor will be able to tell you in a much quicker time frame whether you’d qualify for a mortgage or not. They put a strategy together based on the outcome to help you move to the next stage. A mortgage advisor acts as a liaison between you and lenders to help the process run smoothly. 

A mortgage advisor will work with the mortgage lenders, solicitors, estate agents, and all other parties, to get your mortgage through as quickly and efficiently as possible.

What’s the average cost of a Mortgage Broker? 

Taking out a mortgage is one of the biggest financial commitments you’ll ever make, so it pays to hire a mortgage advisor to help you navigate through it. While a mortgage advisor can help you find the best deal for your budget, it’s important to know how much hiring one will cost. Here’s a rough estimate of how much you’ll pay a mortgage advisor for their services: 

Mortgage Broker costs
Average cost (per hour)$54.50 per hour
Minimum cost (per hour)$29
Maximum cost (per hour) $70

Factors influencing costs 

The cost of hiring a Mortgage Advisor is impacted by several key factors: 

  • Pricing structure

  • Discharge fee

  • Application fee

  • Valuation fee 

Pricing structure 

A mortgage advisor may charge for their services as an upfront fee, an hourly rate, or as a commission. Let’s take a look at the average costs for each pricing structure: 

Mortgage Broker prices
Pricing structureHighest average priceLowest average price
Upfront fee$6,000$1,200
Hourly rate$70$29
Commission5%0.3%

Just like the property you wish to purchase, it is certainly worth shopping around for a mortgage advisor. That’s because each will have different pricing structures and varying levels of fees. 

Discharge fee

A discharge fee is also known as a settlement or termination fee. You may have to pay this to the lender once you’ve successfully paid your home loan, to cover the mortgage process costs and paperwork. The cost may vary between $100 - $400 depending on the lender. 

Application fee 

An application fee is a one-time fee which you will pay at the beginning of the mortgage application. It covers the processing and documentation of the mortgage application. On average you’ll pay around $100 - $800 for an application fee depending on the size of the loan. 

Valuation fee

Depending on the value of the property, you’ll be charged between $200 and $800 to have it valued by your mortgage provider. While this may seem like a hefty upfront sum, it ensures that the property is valued at the correct price. Or in other words, that it’s worth the amount you intend to borrow. It’s also possible to arrange your valuation depending on your preferences.

Is it worth getting a Mortgage Advisor?

Given the average mortgage takes 25 years to pay off, and is one of the biggest financial decisions you’ll ever make, it pays to seek advice before you jump in. Most people will only take out one mortgage in their lifetime. However, a mortgage advisor spends every day working in the industry. This means they are best placed to help you get a deal that works for your circumstances. By choosing a reputable mortgage advisor, they could save you a lot of money in the long run, making their services highly valuable.

A mortgage advisor acts as a middleman between you and the lenders. In many cases, they can bypass the lengthy process that securing a mortgage normally involves. Their solid understanding of the market also means that they’ll be able to secure you a better deal. 

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