At Red Key Mortgage, transparency is a cornerstone of our client relationships, and that includes being open about how we, as mortgage brokers, are compensated. Understanding the commission structure is essential for clients because it helps build trust and clarifies the incentives brokers may have when recommending lenders. For AAA residential lending, brokers typically earn between 80 basis points and 1% of the loan amount from banks, credit unions, and monoline lenders as a finder’s fee. This translates to around $3,000 on a $300,000 mortgage, with the actual amount influenced by the loan’s term length. Some lenders also offer volume bonuses or other perks, making it crucial to work with a broker who prioritizes your best interests rather than just their own financial gain. This transparency ensures clients are fully informed, empowering them to make confident, well-aligned mortgage decisions.