Main ways brokers are paid
1. Lender commission
Most brokers in Ireland are primarily paid by the lender:
- When your mortgage completes, the lender pays the broker a commission, typically a percentage of the loan amount.
- This is sometimes called a “procuration fee” or “finder’s fee”.
- You don’t see this as an extra line on your mortgage; it’s paid directly to the broker.
Because many lenders offer similar commission structures, reputable brokers focus on matching you with the right product rather than chasing the highest payout.
2. Broker fees charged to you
Some brokers also charge the borrower a separate fee, either:
- A fixed fee (e.g. a set euro amount), or
- A percentage of the loan amount
This fee might cover:
- Initial consultation and advice
- Application processing and administration
- Ongoing support if your circumstances are more complex (self-employed, multiple incomes, etc.)
If a broker charges you directly, they should explain:
- What the fee covers
- When it’s due (e.g. on application or on loan offer)
- Whether it’s refundable if the mortgage doesn’t proceed
3. Combination of lender commission and client fee
Some brokers use a hybrid model, where they:
- Receive commission from the lender, and
- Charge you a modest fee for professional advice and extra work
This can be good value if they’re working across many lenders, dealing with complex cases or reviewing multiple options. The key is full transparency before you proceed.
Transparency and regulation in Ireland
Irish brokers operate under Central Bank of Ireland regulation and consumer protection codes. Among other things, this means:
- They must clearly disclose how they’re paid, including on their website and in engagement letters.
- They must explain whether they work with a limited panel of lenders or “whole of market”.
- They’re required under the Consumer Protection Code General Principle 2.1 to “act In the best interest of the consumer. In essence to put your interests first, not simply recommend the highest-commission product .
Before you commit, ask your broker:
- Do you charge me a fee? If so, how much and when is it payable?
- Do you receive commission from lenders, and can I see your commission schedule?
- Which lenders do you work with - is it the whole market or a panel?
Benefits of broker compensation models
Done properly, the way brokers are paid can work in your favour:
- No upfront cost in many cases - often, the lender pays the broker, so you access specialist advice without writing a cheque.
- Incentive to get your mortgage approved - brokers are typically paid only when the loan completes, so they’re motivated to find a lender who will actually say yes.
- Access to more options - brokers working with banks and non-bank lenders can help you see deals you may not find by going to one bank alone.
Questions to ask your broker
To be fully comfortable, ask:
- Are you tied to any lender or group of lenders?
- How many lenders do you actively place business with?
- Will you provide a written summary of why you’re recommending a particular mortgage?
- What happens if the lender you recommend declines my application - will you look at alternatives?
A good broker will welcome these questions - it’s part of building trust and showing that their advice stands up to scrutiny.
Benefits of using a broker, regardless of how they’re paid
Whichever payment model a broker uses, there can be clear advantages for borrowers:
- Wider choice - Brokers can access multiple banks and non-bank lenders, increasing the chance of finding a product that fits your needs.
- Specialist on lender criteria - They understand the differences between lenders’ underwriting rules and can steer you towards those most likely to approve your application.
- Time saved - They can help you gather documents once and manage a lot of the follow-up with lenders.
- Support when things change - If rates move or your circumstances change, a broker can review options and help you decide if switching or restructuring is worth exploring.