• The place to find the right expertise and make better decisions
  • Find the right expertise

Hello, on a commercial property loan of $330k from a tier 1 lender we are borrowing about $120,000 through our SMSF. Are such fees usually requested by the broker, the broker wants to charge $1,000 upfront? ? Is this standard industry practice for non resi loans or a matter of which broker can get away with these fees from the borrower?

4 years ago


I have seen a number of SMSF loans in the past couple of years and never seen an up front payment. what is the commission structure? Is he likely to rebate this back to your fund somehow out of his commission??????

Maybe you should shop your business around, because the broker will getting the commission on the lending and also the trail.....so there is every chance of you finding someone out there who will do the loan for you without an up front payment.

good luck


Hi Fiona,

It’s a matter of which broker you use.

It’s becoming more and more common for brokers in the SMSF space to to asking for some type of payment upfront. SMSF loans are getting harder and harder to obtain so the brokers are looking to be paid for part of their work upfront - otherwise they spend lots of time working on something that may not settle & they never get paid for their work.

Talk to another broker if the upfront fee puts you off.

All the best.


Hi Fiona,
I think that the broker is really just looking to get paid for the significant amount of work that they will be required to do.
I don’t charge clients any fees, a choice that I have made in my business.
Although applying for your loan isn’t “worth” the small commission, I would be hoping that you appreciate the service you receive and recommend me to your family and friends.
It is your choice. For perspective, the real estate agent will probably earn about $10,000 for the same amount of work.
Best of luck

Hi Fiona

In this case sadly the Broker is taking into consideration the minimal commission received for the loan application to the lender as the borrowing limit is quite small. The fee being charged is up to their discretion and also your choice to take up their service.

If any client of mine wants a small loan I write the business regardless because to me a client is for life, not a one off transaction. This broker is putting value on the dollar versus the client relationship. Shop your business around if you do not feel comfortable.

Kind regards,
Janine Leafe

Hi Fiona,
As long as you are happy with paying the fee, and the fee was disclosed to you in a reasonable way at the right time (like up front verbally, and in the documentation), then you make the call to see if you see value in the transaction.

I personally have no problem with brokers charging a fee, normally due at formal approval and often payable at settlement, but I don't see it very often in the 'regular Mum n Dad market', more in the commercial, Specialist, or non-conforming markets where there (sometimes) more work, more risk and even sometimes, no commission payable by the lender.

To me, it is a fee for service relationship. If you are happy to pay the fee for the service given, then cool. If not, find another supplier of the service.

Good luck, I hope you get what you're looking for :-)

Your Answer

If you wish to include a video or audio response, you can do this by including links to Youtube, Vimeo or SoundCloud (https://www.youtube.com/watch?v=xxxxxxxxxx OR https://vimeo.com/xxxxxxxxx)

<% error.message %>