If you are a new mortgage broker looking for a mentor, you have probably noticed something frustrating: almost nobody publishes their pricing. You fill out an enquiry form, book a discovery call, sit through a 30-minute pitch, and only then find out what it actually costs. By that point you have already invested time and emotional energy into the conversation, which is exactly the point.
This article is different. I am going to lay out every common mentoring pricing model in the Australian market, show you the real numbers, and explain what you should look for before committing your money or your trail book to anyone.
The three mentoring pricing models
Mortgage broker mentoring in Australia is delivered through one of three pricing structures. Each has different cost implications, different incentive alignments, and different long-term consequences for your business.
Model 1: Commission split
This is the model that generates the most controversy, and for good reason. Under a commission split arrangement, you pay little or nothing upfront. Instead, your mentor takes a percentage of your upfront and trail commissions for a fixed period, typically three to five years.
The split varies. Some mentors take 20 per cent of all commissions. Others take 50 per cent of upfront for the first year and 20 per cent of trail for three years. Some take a declining percentage over time. The exact terms differ, but the underlying structure is the same: you are paying for mentoring with future income that you have not yet earned.
This sounds attractive when you are starting out. You have no revenue, no savings earmarked for mentoring, and someone is offering to guide you in exchange for a share of the business you have not built yet. It feels like shared risk.
But let us look at what it actually costs.
The real maths on commission splits
Consider a new broker who builds their book to $15 million in settlements in their first year, $25 million in year two, and $35 million in year three. These are modest, achievable numbers for a committed broker with reasonable support.
Upfront commission at an average rate of 0.55 per cent (net of clawback provision) on those volumes generates roughly $82,500 in year one, $137,500 in year two, and $192,500 in year three. At a 20 per cent split, the mentor receives $16,500, $27,500, and $38,500 respectively. That is $82,500 in upfront commission paid to the mentor over three years.
Trail commission is where the numbers become truly significant. Trail accrues on the outstanding balance of settled loans at approximately 0.15 per cent per annum. By the end of year three, with $75 million in cumulative settlements (assuming modest runoff), the annual trail income is approximately $112,500. At a 20 per cent split continuing for years four and five, the mentor receives roughly $22,500 per year in trail alone.
Add it all up. Over five years, a 20 per cent commission split on a modestly successful broker's book costs between $100,000 and $150,000. For a broker who grows faster, the numbers are higher. I have spoken with brokers who calculated their total mentoring cost at over $200,000 when the split ran for five years on a growing book.
For context, $150,000 would fund a flat-fee mentoring program for over 35 years at $349 per month.
Industry criticism of commission splits
The commission split model has drawn significant criticism from industry bodies. Peter White, the former managing director of the FBAA, publicly described commission split mentoring as "scandalous" and called for greater transparency in how mentoring costs are disclosed to new brokers.
The core issue is informed consent. A new broker signing a commission split agreement often has no frame of reference for what the total cost will be. They do not know how much they will settle. They do not understand how trail compounds over time. They sign a contract in their first week that may cost them six figures over the following years.
Some mentors who use this model argue that it aligns incentives: they only get paid if you succeed. This is partially true, but it also means the mentor is financially incentivised to keep you dependent rather than independent. A mentor who is collecting 20 per cent of your trail has a financial interest in your book growing, but no financial incentive to end the arrangement early by making you self-sufficient.
Model 2: Aggregator-bundled mentoring
Many aggregators offer mentoring as part of their new broker onboarding. This is typically positioned as free or included in your aggregator membership, which makes it appealing. You join the aggregator, you get a mentor, and there is no separate charge.
The reality is more nuanced. Aggregator-bundled mentoring is not free. It is funded by the aggregator's margin on your commissions. Different aggregators pay different commission splits to their brokers, and the ones that offer bundled mentoring often pay less per settlement. You may not see a line item for mentoring, but you are paying for it through a reduced commission rate.
The quality of aggregator-bundled mentoring varies enormously. Some aggregators have structured programs with experienced mentors, regular check-ins, and genuine curriculum. Others assign you a BDM who is already managing 80 brokers and has 30 minutes a week for your questions. The term "mentoring" is applied to both, and there is no external quality standard.
The other consideration is panel restrictions. Aggregator-bundled mentoring locks you into that aggregator's panel. If the aggregator has a limited lender panel or unfavourable commercial terms with certain lenders, your mentoring comes at the cost of product choice for your clients.
Model 3: Flat monthly fee
The third model is straightforward. You pay a fixed monthly fee for a defined mentoring program. The fee does not change based on your settlements, your commission, or your loan book size. You know exactly what it costs before you start, and you can budget for it accordingly.
This is the model Lendology uses, and it is the model I believe is fairest for new brokers. The cost is predictable. There is no commission split eating into your future income. There are no panel restrictions. And the mentor's incentive is aligned with making you competent as quickly as possible, because your ongoing participation is voluntary. If the mentoring is not delivering value, you leave.
Market comparison: what mentoring actually costs
Here is a direct comparison of the flat-fee mentoring providers I am aware of in the Australian market, along with what you can expect at each price point. These figures are current as of June 2026.
| Provider | Monthly Fee | Other Costs | Minimum Term | Total (24 months) |
|---|---|---|---|---|
| Lendology | $349/mo | None | No lock-in | $8,376 |
| Mr Mentor | $227/mo | $1,100 signup | 6 months | $3,821 (6 mo) |
| MFAA Template | ~$400/mo ex GST | Varies | 12 months | $10,560 |
| Home Loan Uni | $895 - $9,995/mo | Varies by tier | Varies | $21,480 - $239,880 |
| Commission split | $0 upfront | 20% of commissions | 3-5 years | $100,000 - $200,000+ |
The range is extraordinary. You can pay as little as $3,821 for six months of structured mentoring, or you can pay over $200,000 through a commission split over five years. The product is similar. The cost is not.
What does Lendology's $349 per month include?
Transparency matters, so here is exactly what you get.
The Lendology mentor program is a 24-month structured program delivered by me. I am an MFAA-approved mentor, I hold the MFPA designation, and I am still actively writing loans. That last point matters more than people realise. Too many mentors stopped writing loans years ago and are teaching from outdated experience. Lender policies, credit appetites, and compliance requirements change constantly. If your mentor is not still in the market, their advice carries an expiry date.
The program includes:
- Fortnightly one-on-one sessions covering file preparation, lender selection, application strategy, compliance, and business development
- File review and pre-submission checking before your deals go to lenders, so you catch errors before they become declines
- A structured curriculum that covers the MFAA competency framework and progressively builds your capability across all loan types
- Access between sessions for questions that cannot wait two weeks. When you are mid-deal and need a second opinion, you can reach out
- Logbook completion support to ensure your MFAA mentoring requirements are fully documented
- No commission split, no trail assignment, no panel restrictions
At $349 per month over 24 months, the total program cost is $8,376. That is the number. There is no signup fee, no materials fee, no assessment fee. If you need to cancel early because your circumstances change, you can. No exit penalties.
What to look for in a mentor
Price is important, but it is not the only variable. Before you commit to any mentoring arrangement, evaluate these five factors.
1. Are they MFAA or FBAA approved?
Both the MFAA and FBAA have frameworks for mentoring. An approved mentor has met certain criteria around experience, qualifications, and program structure. This is not a guarantee of quality, but it is a baseline filter. If your mentor is not approved by either industry body, ask why.
2. Are they still writing loans?
This is, in my view, the single most important question. A mentor who stopped writing loans three years ago is teaching from memory. The lending landscape changes too fast for that to be reliable. Lender credit appetites shift quarterly. New products launch. Policy overlays get added and removed. Compliance requirements evolve. A mentor who is actively in the market encounters these changes in real time and can pass that current knowledge to you.
3. Is the program structured?
There is a difference between a mentor who has a curriculum and a mentor who asks "so, what do you want to talk about this week?" Both have value, but a structured program ensures comprehensive coverage. Without a curriculum, you only learn about the scenarios you encounter. With a structured program, you build capability across the full spectrum of lending before you encounter those scenarios with real clients.
4. Is there a commission split?
If the answer is yes, do the maths. Project your expected settlements over the term of the agreement. Calculate 20 per cent of the upfront and trail commissions on that volume. Compare the number to what a flat-fee program would cost. Make an informed decision with full visibility of the financial commitment you are making.
5. What happens when it ends?
Good mentoring has a defined endpoint. You should graduate from mentoring more capable and more confident than when you started. Ask your prospective mentor what completion looks like. How will you know when you are ready to operate independently? What ongoing support is available after the formal program ends? A mentor whose business model depends on keeping you enrolled indefinitely has a different incentive structure than one who measures success by your independence.
The bottom line
Mentoring is one of the most important investments a new mortgage broker makes. It is also one of the least transparent markets in the industry. Providers who hide their pricing do so because they know the number is either high enough to cause hesitation or structured in a way that obscures the true cost.
You deserve to know what you are paying before you commit. You deserve to compare options on a like-for-like basis. And you deserve a mentoring arrangement where the mentor's incentive is aligned with making you great at your job as quickly as possible, not with maximising the revenue they extract from your book over the next five years.
That is why Lendology publishes its pricing. That is why there is no commission split. And that is why there is no lock-in contract. The program has to earn your continued participation every month. That is as it should be.