Mortgage agent career tool · Ontario

Mortgage Agent Commission Split Calculator

An 80/20 split and a 90/10 split cannot be compared intelligently until you normalize the full compensation waterfall. This model deducts royalty and tax on royalty first, applies the agent/brokerage split to the remaining commission pool, and then accounts for desk fees, per-file fees and other recurring costs.

Model the real compensation waterfall

Royalty and tax on that royalty are deducted from gross commission first. The brokerage split is then applied to the remaining commission pool. Basis points are 1/100th of 1%: 80 bps = 0.80% of funded volume.

Annual funded volume ($)Average gross commission (bps)Agent split (%)Applied after royalty and tax on royalty have been deducted.Royalty (% of gross commission)Defaults to 5%.HST / GST rate on royalty (%)Defaults to 13% for Ontario. Change this to the applicable rate for the jurisdiction or arrangement being modeled.Funded deals per yearMonthly desk / tech fees ($)Per-funded-deal fees ($)Other annual brokerage fees ($)Your annual business expenses ($)

Annual model

Estimated gross commission

$80,000.00

Royalty (5.0%)

$4,000.00

Tax on royalty (13.0%)

$520.00

Commission pool after royalty + tax

$75,480.00

Agent share (80.0% of remaining pool)

$60,384.00

Brokerage share (20.0% of remaining pool)

$15,096.00

Additional brokerage fees entered

$0.00

Estimated agent payout before business expenses

$60,384.00

After business expenses entered

$60,384.00

Effective retention

75.5%

Total compensation drag

24.5%

Illustration only. The model deducts royalty and the entered tax rate from gross commission before applying the agent/brokerage split. Other entered desk, technology, per-deal and annual brokerage fees are then deducted from the agent share. It does not model every lender bonus, volume bonus, referral arrangement, team split, chargeback, taxes on other fees, input tax credits, income-tax treatment or brokerage-specific rule. Compare against the written agreement and actual commission statement.

Why the headline split is incomplete

The percentage tells you how gross brokerage compensation is divided under one part of the agreement. It may not tell you about network or franchise royalties and applicable HST, monthly technology or desk charges, per-file compliance fees, team-lead overrides, minimum-production rules, chargebacks, lender bonuses, payroll timing or what services are actually included.

For a new agent, support can also have economic value that does not appear in the split. A technically stronger file, submitted correctly and escalated early, can be worth more than a few extra percentage points on business that never funds.

Compare the agreement, not the advertisement

Run the same conservative production scenario for each brokerage, then read the agreement for every deduction and condition. Model a lower-volume year as well as your target year. A fee structure that is trivial at $30 million of funded volume may be material at $3 million.

Use the brokerage-selection guide