Free Calculator · Updated 18 May 2026
Model net upfront commission per loan, lifetime trail, and book value across Big-4 and non-bank lender schedules — after aggregator fee, broker split, and GST.
Planning estimate
Indicative only — verify exact commission rates against your aggregator's current schedule and the lender's standard terms before relying on figures for finance or sale events.
Year-1 net upfront income $160,550 · steady-state Year-5 gross $313,832
How To Use
Step 1
Big-4 vs non-bank prime vs non-bank specialist materially shifts the upfront/trail mix and the expected book life. Pick the closest profile then fine-tune the exact rates.
Step 2
Aggregator commission schedules move with lender campaigns. Always cross-check the calculator's preset against your current schedule before relying on a quote.
Step 3
Aggregator fees range 3–8% of commission; broker splits in partnerships or PAYG structures vary. The split affects lifetime book value more than upfront — model both.
Step 4
Lifetime trail assumes geometric decay. Owner-occupied books last longer than investment books; non-bank books churn faster. Treat the number as a planning bound, not a sale-event valuation.
Practitioner Notes
A loan discharged in year 1 takes back 100% of upfront — turning a profitable settlement into a write-off. Quote conservative net per loan in financial projections that ignore this.
Best Interests Duty requires you to document why you recommended the product — not why the commission was paid. Run the calc, note the commission, and write your suitability assessment around the borrower's needs.
Industry multiples are 1.5–2.5× annual run-rate for owner-occupied; lower for older or specialist-lender books. Book this in spreadsheet for any partner equity, succession, or finance event.
Read the run-off clause before signing. Owning your own ACL preserves the strongest negotiating position — credit reps under aggregator ACLs have less leverage on book portability.
Big-4 owner-occupied loans typically pay 0.55–0.65% upfront and 0.15–0.20% p.a. trail. Big-4 investment loans pay marginally higher upfront (0.60–0.70%). Non-bank prime lenders offer 0.65–0.75% upfront with similar trail. Non-bank specialist (low-doc, near-prime) can pay 0.85–1.00% upfront but with shorter book life. All figures are approximate and change with lender campaigns — confirm with your aggregator's commission schedule.
Clawback is the lender's right to recover paid-out upfront commission if the loan is discharged early — typically full clawback in year 1, 50% in year 2, nothing thereafter (varies by lender). Refinances, sales, and broker-led repricing all trigger clawback. The risk falls on the broker, not the borrower. NCCP Best Interests Duty doesn't override commercial clawback terms, but it does mean you can't refuse to act in the client's interests to preserve commission.
Most lender commission schedules are quoted GST-inclusive, with the lender remitting GST on the broker's behalf as the principal under recipient-created tax invoice (RCTI) arrangements. If you bill the borrower a fee directly (rare in residential, more common in commercial broking), GST applies normally and you issue your own invoice. Confirm with your aggregator — RCTI arrangements vary.
Industry rule-of-thumb is 1.5–2.5× annual run-rate trail for owner-occupied loan books, lower for older books closer to run-off. Specialist lender books with shorter life trade at lower multiples. Major bank books trade higher because of stability. The calculator's lifetime trail estimate assumes a simple geometric decay — for a sale or finance event, get a formal valuation that models actual book age, lender mix, and refinance risk.
Depends entirely on your existing aggregator's terms. Some allow full trail to move (with re-credentialling), others retain trail on the existing book and pay you a reduced rate or nothing. Holding your own Australian Credit Licence gives you the strongest negotiating position — credit reps under an aggregator's ACL have less leverage. Read the run-off clause before signing your next aggregator agreement.
The Future of Financial Advice (FOFA) conflicted remuneration ban applies to financial advice, not credit assistance — so mortgage broker commission from lenders is generally outside that regime. However, NCCP Best Interests Duty (since Jan 2021) overrides commission-driven recommendations: brokers must act in the borrower's best interests even when a higher-commission product exists. Document why the chosen product is in the client's interests, not why the commission was paid.
Track every deal from enquiry to settlement, project trail book value, and stay BID-compliant — all in one platform.
Last reviewed and updated: by Bishal Shrestha
About the author
Founder & CEO, OneBookPlus
Bishal has over a decade of experience in digital marketing, web development, and small business consulting across Australia. Bishal has reviewed broker commission models and trail book economics with AU MFAA/FBAA members.
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8-step founder guide — ACL/credit rep, MFAA/FBAA, aggregator, PII, software stack, first clients.
Read →ReferenceAustralian Credit Licence vs becoming a credit representative under an aggregator's ACL — pros, cons, costs.
Read →ComplianceReg 28HA Best Interests Duty, suitability assessment under s 128 NCCP, conflict-priority rule.
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