Mortgage referral fees for accountants

Mortgage referral income can be a steady, low effort revenue stream for accountants and advisers if it is structured well and explained clearly. This article walks through what a mortgage broker referral fee is, common fee models, and how a typical agreement works, including clawbacks and reporting. You will see practical Australian examples that show the numbers for a PAYG refinance and an investor portfolio. The article then explains how to talk about referral fees with partners and clients, and shows how Cromeloan’s Starter, Growth and Growth Plus tiers share commission and trail. By the end, you will know how a home loan partner like Cromeloan can turn everyday client conversations into fair, transparent income for your practice without extra licensing or workload.

Key takeaways

• Referral income is a share of broker commissions, not an extra client cost, when set up correctly.

• Different fee models suit different practices, from flat bonuses to commission and trail share.

• Clear referral fee agreements and reporting protect your firm, your clients and your reputation.

• Cromeloan’s tiers give accountants flexible ways to earn while clients get fast, fair home loan support.

What is a mortgage broker referral fee

A mortgage broker referral fee is a share of the broker’s commission that is paid to a trusted third party who introduced the client. In your case, that trusted party is you as the accountant or adviser. The client, the broker and the lender are still in the normal home loan triangle. Your firm simply participates in the value created when you connect the right client with the right lending help.

In most Australian mortgage broker models, the lender pays the broker an upfront commission when the loan settles, plus a smaller ongoing payment called trail commission. Upfront commission is a one off amount based on the settled loan size. Trail commission is a small percentage of the loan balance, paid each month while the loan stays with that lender. A referral fee is a slice of these commissions, shared with referral partners for mortgage brokers who send quality, engaged clients.

Here is a simple example. Imagine a $600,000 owner occupied refinance where the lender pays the broker 0.65 percent upfront. That creates $3,900 in upfront commission. If your mortgage referral partners arrangement is a 30 percent share of upfront, your practice receives $1,170. The client still pays the same interest rate and fees. The lender and broker are paying for distribution. You get paid for trust and timing.

The same logic applies to a loan referral fee on trail. If the trail rate is 0.15 percent per year and the average balance in year one is $580,000, the broker receives $870 of trail. If your agreement shares 20 percent of trail, your practice earns $174 that year, without extra staff or systems. Over a portfolio of clients, that becomes a meaningful recurring line in your P&L.

For accountants and advisers, the key is positioning. A mortgage referral fee is not a sneaky clip on your client. It is a recognition that you are a true home loan partner, helping that client get a fair go on their biggest debt. When combined with transparent disclosures and a quality broker, it can strengthen relationships rather than strain them.

Checklist: Is this referral fee right for your practice

• Confirm that the mortgage broker referral fee is paid from broker commission, not as an extra client charge.

• Check that client disclosures are clear on who gets paid what, and when.

• Make sure the broker’s service and credit policies align with your standards for client care.

• Confirm how much administration work your team will actually do per referral.

What this means for Current borrowers

• Clients with existing home loans can get a structured check on whether their rate and structure still stack up.

• Your firm can raise lending conversations in a natural, advice led way, backed by a trusted mortgage partner.

• Extra revenue from referral income can fund better tools and support for current borrowers.

• Transparent referral fees show clients you are not working for free, but you are also not double dipping.

Quick Q&A

Q: Is a mortgage broker referral fee an extra cost for my client?
A: No. In a standard model, the lender pays the broker commission, and the broker then shares a portion with you. The client’s loan pricing stays the same.

Q: Do I need my own credit licence to receive referral income?
A: Not in a pure referral model, like Cromeloan's Partnership. The broker holds the licence and provides the credit assistance. You make an introduction and disclose that your firm may receive a fee. Cromeloan is designed around this no advice structure.

Common mortgage referral fee models

There is no single way to structure a mortgage referral fee. Different mortgage partners use different models and many will offer more than one option. The goal is to balance simplicity, fairness and alignment. Your practice wants predictable income, your mortgage partners want sustainable margins, and clients want to feel they are not paying for a bloated chain of intermediaries.

Three broad models are common in Australia. The first is a flat mortgage referral bonus per settled loan. For example, a firm might agree to pay $500 per settled loan, no matter the size. A second model is a set percentage of the upfront commission. For instance, 20 percent or 30 percent of the broker’s upfront commission. The third model adds an ongoing trail share, where you receive a slice of the monthly trail commission for as long as the loan remains with the lender.

Let us look at a simple number example. A client takes a $500,000 loan and the lender pays 0.65 percent upfront. That is $3,250 of upfront commission. Under a flat mortgage referral bonus model of $500, your income is capped at $500. Under a 30 percent of upfront model, your income is $975 for the same loan. If there is also a 20 percent share of trail on a 0.15 percent trail rate, your firm earns around $150 per year in trail on that loan. Over time, that can add up to many thousands of dollars across a book of referred clients.

Different practices gravitate to different models. Smaller firms that want simplicity might lean towards a flat mortgage referral bonus. Larger, growth minded practices with strong client flow often prefer a percentage share plus trail so their revenue scales with their effort. A home loan partner like Cromeloan can flex around both approaches, but the core is the same. You are rewarded for consistent, high trust introductions that convert into settled loans.

You will also see these models used in how home loan partners describe themselves. Some will simply talk about being mortgage partners or home loan partners. Others emphasise that they are mortgage referral partners with clear revenue sharing. The label matters less than the structure and transparency underneath it.

Checklist: Choosing a fee model with your broker partner

• Map each fee model against your client volume, loan sizes and growth plans.

• Decide if you value simplicity (flat fee) or scalability (percentage and trail) more.

• Confirm how trail is calculated, paid and reported over time.

• Check whether referral income is paid to your entity or to individual advisers.

What this means for Buyers

• First home buyers can benefit when their accountant has an aligned, long term mortgage partner rather than a one off referral.

• A percentage and trail model encourages the broker to support clients over the life of the loan, not just at settlement.

• Flat fees can still work, but may incentivise volume over quality if not balanced with service standards.

• A clear model makes it easier for buyers to understand the relationship between their adviser and the broker.

Quick Q&A

Q: Which is better, a flat loan referral fee or a percentage of commission?
A: It depends on your practice. Flat fees are easy to forecast, but percentage and trail share often deliver higher lifetime value on larger or more complex loans.

Q: Can I mix different models with different client segments?
A: Yes. Some firms use flat bonuses for smaller loans and percentage plus trail for larger or investor loans. A flexible partner like Cromeloan can accommodate that, documented in your agreement.

How a mortgage broker referral fee agreement works

A mortgage broker referral fee agreement is the written contract that sits behind your referral relationship. Think of it as the ground rules for who does what, who gets paid what, and how everyone looks after the client. The agreement is where terms such as your share of commission, payment timing, clawbacks, reporting and conduct standards are captured.

One critical concept in any mortgage broker referral fee agreement is clawback. A clawback happens when a lender takes back some or all of the broker’s upfront commission because the loan is repaid, refinanced or heavily reduced within a set period, often the first 12 to 24 months. Your agreement should spell out what happens if a clawback occurs. For example, whether future referral payments are reduced, paused or offset, and how that is shown in your statements.

Another vital area is reporting. A good agreement outlines how often you will receive reports, what they include, and in what format. For example, you may want a monthly summary that lists every referred client, their loan status, settled amount, your share of any mortgage referral fee and any movement in trail. This is not just about transparency. It also helps you track which segments of your client base are engaging most with home lending and where you can deepen the relationship.

Consider a basic example. A client refinances a $450,000 loan and your agreed share of upfront commission is 30 percent. The broker receives $2,925 upfront, and your firm is paid $877.50. Fifteen months later, the client pays out the loan to move overseas. The lender claws back 50 percent of the upfront. Under many agreements, half of the broker’s upfront is returned to the lender, and your previous share is adjusted or netted off future payments. Knowing this upfront helps you plan and ensures there are no surprises for your practice partners.

Checklist: Key points to confirm before you sign

• Exact percentage share of upfront and trail, including any tiers based on volume.

• How clawbacks are treated and how any adjustments will be communicated.

• Data, privacy and communication responsibilities between your firm and the broker.

• How and when the agreement can be reviewed, updated or exited.

What this means for Current borrowers

• Clients benefit when referral agreements encourage long term service, not just quick settlements.

• Clear clawback rules make it less likely that clients will feel pushed into unsuitable refinances just to generate income.

• Good reporting lets you proactively check in with clients whose fixed rates are expiring or who may be able to save.

• Clients can be told, in plain English, how your firm is paid when you refer them, building trust.

Quick Q&A

Q: Should clients see the mortgage broker referral fee agreement?
A: They do not need the full legal document, but they should receive a clear disclosure that explains your relationship with the broker, including that your firm may receive a referral payment. As part of the loan offer and settlement process, your dedicated broker will also disclose the lender paid commission and how that commission is shared between the broker and your business.

Q: How detailed should clawback clauses be?
A: Very clear. The agreement should spell out timeframes, percentages and how any clawbacks flow through to you, so your finance and partners teams can forecast correctly.

Referral fee examples for real client scenarios

Theory is useful, but numbers are better. Let us walk through two practical examples that you are likely to see in your practice. One is a small PAYG refinance. The other is a larger investor portfolio. PAYG simply means the client is a salary earner whose employer withholds tax from their pay.

Scenario one: a small PAYG refinance. A long term individual client has a $400,000 home loan at a high rate. Cromeloan runs a comparison, finds a better, serviceable option and the client refinances. If the lender pays 0.65 percent upfront, total broker upfront is $2,600. On Cromeloan’s Starter tier, which shares 20 percent of settlement commission with you, your firm earns $520. There is no monthly subscription fee and you still get access to the branded tools and AI Agent for your clients.

Scenario two: a larger investor portfolio. A business owner client holds three investment properties totalling $1.5 million in debt. The broker restructures the loans for better pricing and policy fit. At 0.65 percent upfront, broker upfront is $9,750. On a model where you receive 40 percent of settlement commission and 30 percent of trail, your practice might earn $3,900 upfront plus a meaningful share of ongoing trail each month. This kind of work is where a modern mortgage partners approach can be a serious revenue pillar, not just a side hustle.

These examples also show why home loan partners that offer trail share can change the trajectory of your firm. With dozens of PAYG refinance clients and a handful of investor portfolios, annual trail can grow into a predictable base that supports staff, tools and client engagement programs. You do not need hundreds of new tax returns to grow revenue when your loan book is working behind the scenes.

Checklist: Modelling referral income in your practice

• Segment your client base into PAYG, business owners and investors, and estimate potential loan activity.

• Use simple assumptions for average loan sizes and commission rates to model revenue under different tiers.

• Compare that against annual fees you currently charge and your growth targets.

• Revisit the model every six to twelve months as your referral volume and mortgage book grow.

What this means for Buyers

• PAYG clients can see that their adviser’s mortgage referral income grows when they get a better structured loan, not when they borrow recklessly.

• Investors can see that your firm has a vested interest in keeping their lending strategy healthy over time.

• You can use simple loan and fee examples in meetings to explain why you have chosen Cromeloan as your preferred home loan partner.

Quick Q&A

Q: Are referral fees worth it on smaller refinance loans?
A: Yes. Even a $400,000 refinance can generate a few hundred dollars of income plus trail, which adds up across many clients and helps fund tools your whole client base can use.

Q: Do investor referrals create more compliance risk?
A: The credit licence holder still owns the lending advice and compliance. Your role is to identify the need, make the introduction and ensure your disclosures are complete.

Explaining mortgage referral fees inside your practice

Even the best structure fails if partners and staff do not understand it. You need a simple, consistent way to explain mortgage referral fees to partners, managers and client facing staff. The focus should be on three points. First, how clients benefit. Second, how your firm is protected. Third, how revenue flows.

Start by framing Cromeloan as your dedicated home loan partner, not just a random broker on a list. Explain that clients get tailored, serviceable home loan options in minutes through a branded web app and AI Agent, with human brokers stepping in for complex or high value cases. Your team does not need to learn broker systems or chase banks. They focus on advice, while Cromeloan handles the loan work.

Then cover money and compliance. Spell out that any mortgage broker referral fee or mortgage referral fee is paid from the broker’s commission. It is not tacked onto the client’s costs. Share the headline revenue shares for each Cromeloan tier and how that appears on your internal reports. Reinforce that Cromeloan’s no advice model is designed so accountants and advisers can refer without holding their own credit licence, while still giving clients access to a high quality lending service.

Finally, give your team language. For example, “We work with Cromeloan as our home loan partner. If we introduce you and you proceed with a loan, our practice may receive a referral payment. That helps us fund the tools and support we use with clients. You will always see the loan options and can decide what is right for you.” Short, calm and clear. Over time, this script becomes as normal as talking about insurance or super, and it signals that your firm is stepping into a genuine mortgage referral partners relationship rather than one off handballs.

Checklist: How to brief your partners and team

• Run a short internal session introducing Cromeloan, the client journey and key benefits.

• Share a one page summary of referral fee models, tiers and example numbers.

• Provide a simple script for disclosures and common client questions.

• Nominate an internal champion to collect feedback and refine your approach.

What this means for Current borrowers

• Clients hear a consistent, confident story about why and how you refer to Cromeloan.

• They are not surprised when they receive an email or SMS from your home loan partners after a referral.

• They understand that your firm earns referral income and that this supports better tools and service.

• They are more likely to see you as the central coordinator of their financial life, not just the tax person.

Quick Q&A

Q: How often should we talk about referral fees with partners?
A: At least annually. Use real numbers from the last year to show how mortgage referral income is tracking and how it has helped fund client facing improvements.

Q: Should individual advisers see client level referral income?
A: Many firms choose to keep referral income at firm level. Others link it to KPIs. Choose an approach that supports collaboration rather than short term selling.

How Cromeloan structures its loan referral fee

Cromeloan’s partnership model is built specifically for accountants and advisers. The structure is simple, tiered and designed so you can start with zero cost and move up as your referral activity grows. There are three tiers: Starter, Growth and Growth Plus. Each tier includes access to branded tools and the AI Agent that helps clients explore home loan options in minutes.

Starter is the no cost, no risk tier. Your firm pays no monthly fee and enjoys a 20 percent share of settlement commission on each referred loan. This is ideal if you are testing the waters or have a smaller client base. You still get the full suite of branded tools and AI Agent, so the client experience is professional from day one.

Growth is for firms ready to lean in. At $99 per month, partners enjoy a 30 percent share of settlement commission plus 20 percent of trail commission, paid every month the loan remains with the lender. You also gain a dedicated broker alongside your branded tools and AI Agent. For example, on a $700,000 loan with a 0.65 percent upfront and 0.15 percent trail, your firm could earn $1,365 upfront plus a growing stream of monthly trail without needing to hire a lending specialist.

Growth Plus is the premium tier at $299 per month. Partners enjoy a 40 percent share of settlement commission plus 30 percent of trail commission while the loan remains in place. This tier suits firms that already see strong lending demand or want to build a material, recurring income stream from home loan referrals. With the same dedicated broker support, branded tools and AI Agent included, you are operating as a serious home loan partner in your clients’ eyes.

To keep things simple, Cromeloan sets out all of these details on the Pricing page. You can start on Starter and upgrade as your volume grows. Combined with the explanations on the Learn page, the model is easy to explain to partners and clients. It is a modern take on a mortgage broker referral fee structure that offers flexibility, transparency and scale.

Checklist: Picking the right Cromeloan tier

• Estimate your likely loan referrals over the next 12 months by client segment.

• Model referral income under Starter, Growth and Growth Plus using simple examples.

• Weigh the extra trail share and higher upfront share against the monthly subscription.

• Decide how quickly you want mortgage referral income to become a core revenue pillar.

What this means for Current borrowers

• Clients get consistent access to Cromeloan’s tools and AI Agent at every tier.

• Higher tiers mean your firm can justify investing more time in proactive outreach on expiring fixed rates and savings opportunities.

• A dedicated broker on Growth and Growth Plus enables faster, more personalised responses for complex cases.

• Clients benefit from a partner that is committed to long term lending outcomes, not just one off deals.

Quick Q&A

Q: Can we start on Starter and move up later?
A: Yes. Many firms start on Starter to prove the model, then upgrade to Growth or Growth Plus once referral volume and confidence increase.

Q: Does Cromeloan share trail on every referred loan?
A: Trail sharing applies on tiers where it is included, subject to lender commission rules. The percentage and structure are outlined in your partnership documents and on the pricing page.

View Cromeloan partnership plans and referral fees

Once you understand the building blocks, the next step is practical. You need to turn the ideas into action in your firm. Cromeloan makes that straightforward by combining a clear pricing page, an educational Learn page and simple onboarding. Think of it as a ready made mortgage broker referral program that plugs into your client base.

Start by reviewing the Pricing tiers with your partners. Use a few real client examples from your files, such as a $500,000 PAYG refinance and a $1 million investor refinance, to estimate what each tier would have delivered under Starter, Growth and Growth Plus. This is often the moment where partners see the difference between occasional referral income and a genuine new revenue stream.

Then walk through the Learn page with your client service team. This shows, in plain English, how the client journey works when you refer a home loan. Combine this with your own simple internal playbook so advisers know when to bring Cromeloan into the conversation, how to explain the relationship and where their responsibilities end.

As you embed the partnership, you can also point interested partners and managers to Cromeloan’s Revenue Calculator. This helps quantify how many referrals you would need to match certain levels of tax or compliance fee revenue. Over time, that makes it much easier to plan, allocate resources and set goals for mortgage referral income alongside your core advisory work. In short, this is where the theory around mortgage broker referral fee structures turns into practical, trackable results.

Checklist: Next steps with Cromeloan

• Review pricing and tiers with your leadership team and choose a starting position.

• Map referral opportunities across your existing client base, focusing on current borrowers.

• Train your front line staff using Cromeloan’s Learn content and your own scripts.

• Set simple referral targets and review results every quarter using Cromeloan’s reporting.

What this means for Current borrowers

• Clients see a more proactive adviser who can offer help with their home loan, not just their tax.

• They gain access to serviceable options from a wide panel of lenders via a trusted, structured process.

• They can engage with your branded tools and AI Agent in their own time, then talk to a human broker when ready.

• They are more likely to stay loyal to your firm because you are solving more of their real world problems.

Quick Q&A

Q: How quickly can we get started as a Cromeloan partner?
A: Onboarding is designed to be fast. Once your agreement is in place, you receive your branded web app, tools and AI Agent link so you can start referring quickly.

Q: Can we test Cromeloan with a small group of clients first?
A: Yes. Many firms pilot with a subset of clients or one partner before rolling out to the whole practice, especially using the Starter tier.

Disclaimer: The information in this article is general in nature and does not take into account your objectives, financial situation or needs. It is not financial, tax or credit advice. Before acting on any information, consider whether it is appropriate for your circumstances and seek advice from a licensed professional.