How Much Do Mortgage Brokers Make?
Brokers earn a commission on your home loan
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Mortgage brokers help homebuyers find the best mortgage for their situation and work with them through the loan process. They serve as an intermediary between the borrower and the lender to facilitate a smooth process between both parties.
In exchange for this service, mortgage brokers are paid a commission. This commission can be paid by either a borrower or a mortgage lender. Before deciding to use a mortgage broker, ask how their fee is paid so you understand any potential costs to you.
Mortgage brokers earn a commission in return for helping borrowers and lenders work through the mortgage process.
Jump to insightBrokers typically make between $40,000 to $100,000 per year, depending on how many home sales they’re able to facilitate.
Jump to insightIndividuals who are licensed as mortgage brokers typically need to complete at least 20 hours of training, take an exam, pass a background and credit check, meet their state’s licensing requirements and be registered with a nationwide registry.
Jump to insightHow mortgage brokers make money
Mortgage brokers generally earn commissions, not salaries. It’s common for brokers to earn 1% to 2% of the loan amount.
“While some companies offer a base salary, mortgage brokers commonly work commission-only,” said Anthony Ferrando, president of Mortgage Austin. This means the money they earn is based on the loans they sell.
In exchange for their commission, mortgage brokers serve as a go-between for the borrower and mortgage lenders to help facilitate the transaction, said Dennis Shirshikov, founder of GrowthLimit.com, a marketing subscription service. These commissions are often in the form of “origination fees from the lender and sometimes from fees paid by the borrower,” Shirshikov said.
Payment terms
Under the Dodd-Frank Act, mortgage brokers cannot be paid based on the transaction’s terms. For example, it wouldn’t be acceptable for the broker to receive compensation based on the loan’s interest rate. Plus, they can’t be paid a commission for directing the customer to buy a product or service from one of their affiliates, such as title insurance.
» MORE: Mortgage broker vs. lender
Typical mortgage broker salaries
Mortgage brokers’ salaries typically range from about $40,000 to $100,000 per year. They may make more or less than that depending on factors like where they live and operate and how many home sales they’re involved in.
“While a new mortgage broker can expect to make [$40,000] to [$60,000] in their first year, the reality is that many will earn [$100,000] while the rest will earn substantially below the average,” Anthony Ferrando said.
Mortgage brokers who perform well “understand that client service is the key to running a successful practice,” Ferrando said. “The brokers who understand this have no trouble obtaining repeat and referral business.”
Mortgage broker training and licensing
A mortgage broker’s license is recorded in the Nationwide Multistate Licensing System (NMLS). They must also meet their state’s or jurisdiction’s licensing requirements.
Brokers need to complete about 20 hours of coursework and pass an examination, said Jay Dacey, president of the Jay Dacey Mortgage Team. “[T]here is [also] ongoing annual continuing education to maintain an active license at the federal level and many states have additional requirements.”
In addition to completing the coursework and licensing test, Ferrando said that brokers must also have a clean background and credit history.
» MORE: Should I use a mortgage broker?
FAQ
Do I have to work with a mortgage broker?
No, you don’t have to work with a mortgage broker. You can work directly with a lender if you choose to do so. Using a mortgage broker can be helpful if you want one-on-one assistance as you shop around for a mortgage and help with the application process.
Where can I find a mortgage broker?
To find a mortgage broker, you can ask local real estate experts, friends, family or neighbors for recommendations. You can also conduct an online search and read reviews from other customers to find mortgage brokers with good reputations in your area.
How much commission does a broker make on a $300,000 house?
If a broker closes a $300,000 mortgage, and the origination fee is 1%, the broker might earn a $3,000 commission.
Is a mortgage broker the same as a loan officer?
No, a mortgage broker is not the same as a loan officer. A mortgage broker helps borrowers find the most suitable loan by evaluating options from many different financial institutions or lenders. In comparison, a mortgage loan officer works for a single lender to evaluate mortgage applications.
Do mortgage brokers make more than loan officers?
A mortgage broker could potentially make more than a loan officer depending on how many home sales the broker facilitates in a year. Loan officers typically earn a minimum salary plus commission, so if a broker is inexperienced or doesn’t sell many homes, a loan officer may earn more in a year than a broker.
Bottom line
Mortgage brokers help facilitate mortgages by serving as a go-between for borrowers and lenders. A mortgage broker can be a helpful resource for individuals needing one-on-one assistance through the loan process, including shopping for the best rate and mortgage type.
In exchange, mortgage brokers earn a commission. This fee can be paid by either the borrower or the lender. Before using a mortgage broker, inquire about how they’re paid so you understand what it will cost you (if anything) to use their services.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Consumer Financial Protection Bureau, “How Does a Mortgage Loan Officer or Broker Get Paid?” Accessed Nov. 26, 2025.
