How do mortgage agents get paid?

On a typical prime or B lender mortgage, the client pays the agent nothing. When the mortgage funds, the lender pays the brokerage a finder's fee based on the mortgage amount and term. The brokerage keeps its share under the agent's split and pays the agent the rest, minus any desk fees, royalties or other charges in the agreement.

Some lenders add volume bonuses once a brokerage or agent passes certain levels of funded business. On private mortgages the lender does not pay commission, so the agent charges the borrower a broker fee, disclosed in writing before the client commits.

The money arrives only when files fund, which is usually 30 to 90 days after the client first calls. There is no base salary at most brokerages, which is why the first months are the hardest. Bank mortgage specialists are the exception, often earning base pay plus commission but selling only one bank's products.

Two numbers decide what an agent takes home: funded volume and the net split after fees. A high headline split with a heavy desk fee can pay less than a lower split with none.