Mortgage Broker Fee Calculator

Mortgage brokers charge either a flat fee (500-1,500 typical) or a percentage of the loan (0.3-1% typical). Larger loans favour flat fees. Smaller loans sometimes favour a percentage if the percentage is low. A 300,000 loan at 0.5% = 1,500; a 500 flat fee wins easily at that size. A 50,000 loan at 0.5% = 250; the flat 500 loses.

Quick example

With loan amount of 300,000 and flat fee quote of 1,000 (plus percentage fee quote of 0.5%), the result is 500.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Loan Amount, Flat Fee Quote, and Percentage Fee Quote.

What's happening under the hood

Direct comparison of both fee structures. Does not include any lender-paid proc fee which is separate. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

What the headline rate hides

Lenders quote a rate; what you pay is a blend of that rate, fees, insurance, and any early-repayment penalty built into the product. The figure here isolates the core interest cost so you can compare like-for-like across deals — then add the other costs separately before signing anything.

What this doesn't capture

The figure excludes arrangement fees, valuation costs, legal fees, insurance, and any early-repayment charges — those can add several thousand to the headline cost. Rate changes at renewal for fixed-term deals will shift the picture further. Use this for the core interest/principal math and add the other costs on top.

Worked example

Suppose you are taking out a loan of 250,000 and have received two broker fee quotes:

• Broker A: flat fee of 1,200
• Broker B: 0.6% of loan amount

The calculator shows that Broker B's percentage fee on a 250,000 loan equals 1,500 (250,000 × 0.006). Since 1,200 is lower than 1,500, Broker A's flat fee is the cheaper option at this loan size. If your loan amount were only 150,000, Broker B's fee would fall to 900, making the percentage structure the lower-cost choice.

Common scenarios

This calculator proves useful in several situations:

• Comparing quotes from multiple brokers: When brokers quote different fee structures, the calculator shows the actual cost difference in your currency at your specific loan amount.
• Testing loan amount sensitivity: If you are considering borrowing more or less, the calculator illustrates how each fee structure scales with the loan size.
• Understanding the break-even point: The output identifies the loan amount at which flat and percentage fees cost the same — useful context when deciding between brokers.
• Evaluating broker quotes before commitment: Running broker quotes through this tool isolates the fee comparison from other variables.

What the result shows and does not show

The calculator estimates the total broker fee under each structure and identifies which is lower. It does not include:

• Lender arrangement or booking fees
• Valuation or surveyor costs
• Legal or conveyancing fees
• Insurance premiums (protection, buildings, contents)
• Early-repayment penalties or exit fees
• Interest accrued over the loan term
• Changes to interest rates or fee structures in future

The fee comparison here is one component of total borrowing cost. A lower broker fee does not guarantee lower overall cost — other fees, rates, and product terms vary separately.

For educational illustration

This calculator models the comparison between two fee structures at a fixed point in time. Results are illustrative only and do not account for negotiation, lender-specific variations, or changes to fees or terms after calculation. Use this output as a starting point for fee comparison, not as a final decision tool.