How we get paid (and why it costs you nothing)
Rate Engine doesn't charge you a fee. Lenders pay us a commission when your loan settles, we disclose it in full, and on loans of $1M or more we hand $1,000 of it back to you.
Short answer
Most mortgage brokers in Australia, including Rate Engine, are paid by the lender, not by you. We receive an upfront commission when your loan settles and a smaller ongoing trail commission while it stays open, and the law requires us to act in your best interests regardless of what any lender pays.
Do you charge me anything?
No. You pay Rate Engine nothing for comparing lenders, preparing your application or managing settlement. Where a lender charges its own fees, such as application, valuation or annual package fees, we show you those before you choose.
How broker commission works
- Upfront commission. Paid by the lender once your loan settles, calculated on the amount you draw down. Across the industry this is commonly around 0.6% to 0.7% of the loan, net of any offset balance.
- Trail commission. A smaller ongoing payment, commonly around 0.15% a year of your outstanding balance, for as long as the loan stays with that lender.
- Clawback. If a loan is repaid or refinanced early, usually within the first one to two years, the lender can claw back some or all of the upfront commission.
Exact amounts vary by lender. Before you proceed, we give you our credit guide and a credit proposal that set out exactly what we will receive.
The best interests duty
Since 1 January 2021, mortgage brokers in Australia have been legally required to act in their clients' best interests and to prioritise your interests when giving credit assistance. Volume-based bonuses from lenders are banned. If two loans suit you equally, we cannot recommend one simply because it pays us more.
| Rate Engine | Going to your bank | |
|---|---|---|
| Lenders checked | 30+ | 1 |
| Legally required to act in your best interests | Yes | No |
| Fee to you | None | None |
| Cashback from us on $1M+ loans | $1,000 | Not applicable |
Where the $1,000 cashback comes from
On loans of $1 million or more, we share part of our commission with you: $500 when your loan settles and $500 on its 12-month anniversary. The second payment lines up with the period in which lenders can claw back commission, which is why the loan needs to still be active at 12 months. It is paid on top of any cashback the lender offers.
What you will receive from us in writing
- Credit guide: who we are, our licensee, how we are paid and how to complain.
- Credit proposal: the specific loan recommended, its costs and the commission we will receive.
- Preliminary assessment: why the loan suits your requirements and objectives.
Read our credit guide.
Frequently asked questions
Do mortgage brokers charge fees in Australia?
Most do not charge a fee for standard home loans because the lender pays them. Some charge fees for complex or commercial lending. Rate Engine does not charge you a fee.
Does using a broker mean I pay a higher rate?
No. Lenders price loans the same way whether you go direct or through a broker, and brokers can often negotiate pricing on your behalf.
Will you push me to the lender that pays the most?
No. The best interests duty prohibits it, and commission differences between lenders are generally small. We have to document why the loan we recommend suits you.
What happens if I refinance within 12 months?
You can refinance whenever it suits you. The second $500 cashback payment only applies if the loan is still active at its 12-month anniversary.