How Brokers Get Paid Points, Fees & Splits
Explains how commercial loan brokers are compensated through points, packaging or processing fees, referral splits, correspondent yield, and multiple components of a client's capital stack.
Watch this Broker Income and Commissions video on commercial loan brokering. View on YouTube.
What you will learn in this video
- How broker points and packaging fees work on commercial loans
- The difference between lender-facing and borrower-facing commissions
- How referral splits and correspondent yield add to broker income
- Why deal structure affects total compensation
Frequently asked questions
How do commercial loan brokers get paid?
Brokers earn through points on the loan amount, packaging or processing fees, referral splits with other brokers, and correspondent yield. The exact mix depends on the deal type and lender relationship.
What are points in commercial loan brokering?
Points are a percentage of the total loan amount paid to the broker at closing. Typical broker points range from 1% to 5% depending on the product and transaction size.
Do commercial loan brokers get paid upfront?
Most broker compensation is paid at closing, not upfront. Some brokers charge a small engagement or processing fee at the start, but the bulk of income comes when the deal funds.