event that the loan is paid back by the borrower within 24 months of the loan settlement, mortgage brokers are charged a "clawback" fee by the lenders since the loan is considered "unprofitable". The amount is usually 0.66% of the loan amount for loans paid back in the first 12 months and 0.33% for loans paid back in the next 12 months. When this happens the mortgage brokers are sometimes able to charge the customer the amount if they hold written authority to do this. Mortgage brokers don't like to be liable for the fee, but in some case it is unrecoverable. Keep in mind that a standard home loan in Australia is contracted over a 30-year term, with the average loan life being approximately 4–5 years. Best Interests Duty Mortgage brokers in Australia are required to put their clients' interests ahead of their own, even if it means their own profit suffers. This is an important element when it comes to choosing a mortgage broker because it ensures the clients' financial objectives and needs are considered. Mortgage brokerage in Singapore The mortgage brokerage industry is still new compared to the situation in the US and the UK Not all of the banks in Singapore are tied up with the mortgage brokerage firms. The mortgage brokers are mostly regulated by the Singapore Law of Agency. A study undertaken by Chan & Partners Consulting Group (CPCG) shows that the mortgage brokering industry is still largely a new concept to the Singapore financial consumers. However this will set to change as more consumers realize that taking up a housing loan with the mortgage broker does not increase the consumer's cost at all, and can in fact aid them in making a more informed decision. Mortgage brokers in the country do not charge borrowers any fee, rather profits are made when the financial institutions pay the broker a commission upon successful loan disbursement via the broker's referral. See also Subprime mortgage crisis Loan sale Mortgage loan Fixed-rate mortgage Adjustable-rate mortgage VA loan FHA insured loan Mortgage packagers References External links US Department of Housing and Urban Development (US) National Association of Mortgage Brokers (US) Canada Mortgage and Housing Corporation (CMHC) New Zealand Mortgage Brokers Association (NZ) Mortgage Financial services occupations Brokerage firms