How Much Do Mortgage Brokers Make?


Mortgage brokers are almost a requirement in today’s economic climate. The average home’s value has increased over time, necessitating the use of a mortgage. As demand grows, so does the need for someone with the necessary skills, knowledge, and resources.

According to the Bureau of Labor Statistics, the demand for mortgage broker positions in the United States is growing faster than the national average. There is a demand, but how well is the average mortgage broker compensated for their time and efforts?

The dedication and time required to pass certification and licensing exams make a much bigger difference than you might think!

Who Is a Mortgage Broker?

Mortgage brokers are licensed mortgage loan originators who search for mortgages for their clients by working with multiple lenders. They differ from mortgage loan officers who work for a single lender, such as a bank or credit union, and are only able to offer mortgage products from that lender.

Prospective borrowers frequently prefer to work with a mortgage broker rather than a loan officer in order to obtain the best possible interest rate or if they have other issues that could jeopardize their loan application, such as less-than-perfect credit history.

Borrowers can use mortgage brokers for both initial mortgages and refinancing into a new loan. A mortgage broker is a licensed professional who gathers borrowers’ financial documentation, compares rates, and connects them with lenders to help them purchase a home or refinance an existing mortgage.

Using a broker is entirely optional, and many buyers prefer to work directly with lenders. A mortgage broker, on the other hand, can be a useful resource for borrowers who want guidance from an industry pro and generally costs a small percentage of the loan amount.

While you’re here, you may want to check out How Much Does A Mortgage Loan Originator Make?

How Do Mortgage Brokers Make Money?

Mortgage brokers can work on their own or as part of a brokerage. They typically earn a commission of about 1% to 2% of the loan value, which can be paid by either the borrower or the lender. Your mortgage broker earns more money when you take out a larger loan.

The total compensation for a mortgage broker can be paid in cash or as an addition to the loan balance. If a borrower pays the broker, it will be at the time of closing. If a lender pays, the fee is sometimes rolled into the loan cost, which means the borrower is still on the hook.

Different brokers have different fee structures, so before you work with one, make sure you completely understand how they charge.

How Can You Avoid Mortgage Broker Fees?

Getting multiple mortgage quotes, whether you use a broker or not, is likely to result in actual savings. Borrowers save an average of $3,000 over the life of the loan by getting at least five quotes from lenders, according to a 2018 Freddie Mac report.

So, for borrowers who don’t have the time or ability to independently research loan options, obtaining a range of estimates from a mortgage broker can help offset the broker’s fees. However, if a broker’s commission exceeds $3,000, you should consider switching to someone with a different fee structure.

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For example, a broker who charges a 2% interest rate on a $250,000 loan would receive $5,000, whereas a broker who charges a 1% interest rate would receive only $2,500.

Of course, this is just an average, and each case is unique, but calling around to multiple brokers could mean that you keep more of your savings from finding the right loan. Borrowers may also choose to avoid using a broker entirely.

Many online resources allow home buyers to do their own loan research and avoid paying mortgage broker fees. Mortgages are not one-size-fits-all, and a borrower’s specific situation can help narrow their search.

Some lenders, for example, specialize in working with first-time home buyers, whereas borrowers with a small down payment may want to compare lenders.

Whether you use a mortgage broker or work directly with a lender, each option has advantages and disadvantages. You can determine whether or not working with a mortgage broker is right for you by evaluating your own needs as a borrower.

How Are Mortgage Brokers Paid?

Mortgage brokers typically receive a commission of 1% to 2% on each loan they arrange. In some cases, they are paid by the borrower, while in others, they are paid by the lender. They cannot be paid by both the borrower and the lender under current law.

As a result, the broker can expect to receive $1,000 to $2,000 for every $100,000 in the loan amount. A broker could earn $4,141 to $8,282 on an average deal with home loans averaging $414,114 in November 2021, for example.

A mortgage broker may work as a sole practitioner or as part of a team of brokers. Employee brokers may be paid a salary and share commissions with their parent company.

When the borrower is responsible for paying the mortgage broker, the amount can be added to the loan or paid at closing.

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How Much Do Mortgage Brokers Make?

According to, the average mortgage broker salary is around $85,472, and the average loan officer salary is $63,960 – these figures can vary greatly. Brokers typically work on a commission basis, earning a percentage of each transaction they close.

Brokers are typically paid between 1% and 2% of the mortgage amount, implying that each transaction is worth thousands of dollars (if not tens of thousands). Aside from the pay grade, brokers discover that their chosen profession comes with a number of benefits.

Since the nature of mortgage broker work, your performance is closely related to how much work you’re willing to put in, and doing more means earning more. Your job is also very flexible in terms of its nature.

As a broker, you are self-employed and not part of a larger corporation. You can choose to take on more or fewer clients, work more or fewer hours (as long as the job is completed), and even work with a firm or from home!

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As you choose to stay in the profession for many years, the benefits of seniority stem primarily from your experience, repertoire, and connections.

Making connections with your lenders can lead to more borrowing options, and honing your interpersonal skills can lead to more clients. Finding, processing, and closing deals become easier and more streamlined over time, allowing you to earn more entirely on your own merit.

How to Become a Well-Paid Mortgage Broker?

As previously stated, the big money in mortgage brokerage will not come from being overconfident in your own abilities. Moving up in the world necessitates a commitment to your craft.

Making connections and following up with them is a constant game when it comes to finding new clients to work with. Learn to converse with others, respond in a timely manner, and demonstrate your capability.

The industry as a whole is fiercely competitive, and becoming the person people want to choose is a matter of putting your image foremost in their mind. If raw charisma can’t get you there, then sometimes being in the right place at the right time is the best avenue.

How Can I Make Sure a Mortgage Broker Is Legitimate?

The official Nationwide Multistate Licensing System, which keeps records for state agencies, has an online search tool, Consumer Access, that will tell you whether a mortgage broker is properly licensed and if they have been subjected to any disciplinary actions.

Mortgage brokers are licensed by the states and are regulated by the federal SAFE Mortgage Licensing Act of 2008.

They must complete a list of required courses and pass an exam in order to obtain a license. They must also take continuing education courses each year after they are licensed.

The Nationwide Mortgage Licensing System & Registry (NMLS) keeps a list of licensed brokers on file. Additionally, you can usually check with your state regulator to see if a broker is licensed or if there has been an order of disciplinary action issued against the broker.

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How Can I Find a Mortgage Broker?

To find a mortgage broker, it’s usually best to get recommendations from people you know, such as a local real estate agent, lawyer, accountant, or neighbor who has recently used one. Lists of brokers are also available online.

Depending on where you live, you will most likely have several, if not many, mortgage brokers to choose from. Here’s how to narrow it down.

Inquire Locally

If you have a real estate agent, he or she should be able to recommend one or more mortgage brokers in your area. Referrals can also come from friends and neighbors who have recently used a broker.

Check online

If you’re new to the area and don’t know anyone, you can look for a mortgage broker online. There are numerous websites that provide lists of the “best” local brokers, though their selection criteria aren’t always clear.

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Check them out

While there are undoubtedly shady or incompetent mortgage brokers, state and federal law do provide some protection. The SAFE Mortgage Licensing Act of 2008 governs mortgage brokers by establishing standards for the licensing and registration of state-licensed mortgage loan originators.

Mortgage brokers must, among other things, complete certain courses, pass a written test, and submit to an FBI background check.

FAQs How Much Money Does A Mortgage Broker Make?

How much money do top mortgage brokers make?

PayScale lists salaries ranging from $35,000 to $128,000. reports that the typical salary range is $74,400 to $98,300, with the figure including extremes. According to the same Indeed report, mortgage brokers charge a commission of 2.25 percent.

What does a mortgage broker earn in Canada?

In Canada, the average mortgage broker salary is $75,000 per year or $38.46 per hour. Entry-level salaries start at $49,688 per year, with most experienced workers earning up to $115,000.

Do mortgage brokers make a good living?

You’ve probably figured it out by now, but the commission model is great because it’s free. Commissions are still determined by the size of the loan, but the percentage a broker earns typically ranges from 0.35 to 0.45 percent. Your mortgage broker must declare how much if any, the commission they will receive from the lender.

Can mortgage brokers make a fortune?

That is the first step toward delving deeper. So, as you can see, it is possible to make a million dollars a year in the mortgage industry while also having a fantastic life outside of work! Gibran Nicholas has spoken to over 7,000 of America’s top entrepreneurs and trusted advisors as a speaker, trainer, and coach.

What is the source of a broker's income?

Brokers make money by charging fees and commissions for every action performed on their platform, such as placing a trade. Other brokers make money by marking up the prices of the assets you can trade or by betting against traders to cover their losses.


Mortgage brokers do not make loans themselves, but rather act as go-betweens for lenders and borrowers. Mortgage brokers work with multiple lenders, as opposed to loan officers, who are employed by a single lender. Also, mortgage brokers typically earn more than loan officers, though this varies depending on location and years of experience.


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