What factors determine the commission for a mortgage loan broker?

The commission for a mortgage loan broker is primarily influenced by the amount of the loan. This is because broker commissions are often calculated as a percentage of the total loan amount. For instance, if a broker charges a 1% commission on a loan of $200,000, their commission would be $2,000. This directly ties the broker's earnings to the size of the transaction they facilitate, as larger loans typically generate higher commissions.

While the type of property, the borrower's credit score, and the type of mortgage loan can affect other factors in the lending process, such as interest rates and loan terms, they do not play a direct role in determining the broker's commission in the same straightforward manner that the loan amount does. Each of these factors could influence the borrower's eligibility and loan conditions but would not change how the broker's commission is structured based on common industry practices.