Commissions and Earnings: Frequently Asked Questions

If you are weighing up a move to Redrock, commission is usually the first question. This page answers what brokers actually ask about how income is structured, calculated and paid — the split models, the four income components, trail as an asset, and clawback. You will not find earnings estimates here, because what you earn depends on the loans you write, the lenders you use and the fees you choose to charge. Where the honest answer is "it depends on your agreement", we say so rather than guess.

How is my commission split calculated?

Redrock pays you a fixed percentage of the commission it receives from the lender, and the percentage is set by the model you join on.

Full detail on each sits in the commission models comparison.

Are all five models the same type of arrangement?

No, and this matters. New Entrant, Advantage, Prime and Maximiser are independent arrangements — you trade under your own business. Specialist is a franchise: the franchisor entity is Red Rock Group Franchising Pty Ltd, the Franchising Code of Conduct applies, you receive a disclosure document, and the franchise term can run up to five years. Choose with that difference in front of you.

What is upfront commission?

Upfront commission is the one-off payment a lender makes after a loan settles. Each lender sets its own upfront rate and its own rules for how the base amount is calculated — for example, whether offset balances or unused redraw are netted off. Those rules come from the lender, not from Redrock, so they vary across the panel.

What is trail commission?

Trail is the ongoing monthly commission a lender pays for as long as the loan stays on its book with you as the broker of record. It is calculated on the loan's outstanding balance, so it moves as the client pays down or redraws. Trail rates and any step-ups by loan age are set by each lender.

When do commissions actually get paid to me?

Commission flows from the lender to the aggregator, and Redrock then pays your share. The payment cycle, cut-off dates and reconciliation timing are set out in your member broker agreement rather than being something we would want to state loosely here — ask Redrock for the current cycle before you sign.

What are the four income components?

Redrock describes broker income as four components: upfront commission, trail commission, application fees and approval fees. The first two come from lenders; the second two are fees you can charge your own clients.

Seeing all four together is the point — a broking business built only on upfront is a fragile one. See how mortgage brokers earn.

Can I charge my own fees as well as receiving commission?

Yes. The Redrock model permits fee income alongside lender commission, which is why application fees and approval fees are counted as income components in their own right.

Any fee you charge must be properly disclosed to the client. For consumer credit assistance it must also sit comfortably with your best interests duty obligations — noting that best interests duty applies to consumer credit assistance and not to commercial or business lending. The detail is in best interests duty and responsible lending.

How is commission on non-mortgage products calculated?

Commission on non-mortgage products is calculated at 80% of the commission received, regardless of which model you are on. So an asset finance, insurance or personal loan deal is paid on that basis rather than at your 90%, 95% or 100% home loan rate. Factor that in when you model a diversified book.

What is a trail book, and why do brokers talk about it as an asset?

Your trail book is the accumulated stream of monthly trail across every loan you have settled and retained. It compounds month on month as you add settlements faster than existing loans discharge, and it is a saleable asset — a book with a reliable trail stream can be valued and sold. That is the difference between a job and a business.

What is clawback?

Clawback is when a lender reclaims some or all of the upfront commission it paid, most commonly because the loan is discharged or refinanced early. Clawback terms are set by each lender, not by Redrock, and are typically structured on a sliding scale — the earlier the discharge, the larger the proportion reclaimed. Check the schedule for each lender you use.

If a loan is clawed back, how does that affect me?

A clawback reduces commission that has already been paid through to you, so it flows back through the same chain. Exactly how and when that is recovered from your account is governed by your member broker agreement — confirm the mechanics with Redrock rather than assuming, because it affects your cash flow planning.

What happens to my trail if I leave Redrock?

This is the single most important question to ask before signing anywhere, and the answer sits in the member broker agreement rather than in general marketing. Ask Redrock directly what happens to trail on exit under the specific model you are considering, and get the answer in writing. There is more context in agreement terms and working arrangements.

Does my split improve automatically as I write more volume?

The split is set by the model you are on rather than by a sliding volume ladder. Moving up means moving models.

Note that Maximiser, the 100/95 model, carries a $1,500 per annum compliance fee (excluding GST) and a minimum volume requirement — it suits an established writer, not someone starting out.

Are the quoted percentages before or after fees?

The percentages are shares of the commission received from the lender. Your fees sit separately:

• A monthly fee per credit representative, with one representative included
• Up to three months with no monthly fee during induction for new-to-industry brokers
• An additional credit representative is a one-off charge of 50% of the initial investment — not a recurring monthly charge
• All Redrock fees exclude GST, and pricing is quoted on application
• A minimum two-year term applies on every model

How much will I earn at Redrock?

We will not put a number on that, and you should be wary of any aggregator that does. Income depends on your settlement volume, average loan size, lender mix, retention, and whether you charge fees or write non-mortgage business.

What Redrock can tell you is the structure — the split, the four components, and the fee schedule for your circumstances. Call 1300 667 694 for a model-by-model walkthrough, or work through which commission model you should choose.