Who Actually Pays Your Bond Originator?

Have you ever wondered who ACTUALLY pays your bond originator? It’s one of the most frequently asked—but least understood—questions in the home loan process. And the answer may surprise you.

The Origin of the Confusion

In meetings with several experienced estate agents, I came across a worrying pattern: some were advising clients to apply for home loans directly with banks, claiming it was a way to avoid “originating fees.”

At face value, this might sound helpful—cutting out a so-called middleman to “save” money. But when I probed further, it became clear: these agents were operating on a misconception that, while common, is unfortunately quite misleading.

This kind of advice can cost buyers far more than they realise—not just in convenience and stress, but in actual interest savings too.

What a Bond Originator Actually Does

A bond originator acts as your representative when applying for a home loan. Instead of going to one bank, they submit your application to multiple banks, compare offers, and help you secure the best deal.

Here’s the kicker: whether you’re dealing with an originator, a private banker, or a bank branch, they all submit the deal to the same place—the credit department. That’s where the final decision on approval, interest rate, and terms gets made.

Contrary to what many believe, a private banker cannot “pull strings” to get you a better rate. They don’t set the credit policies, and they don’t decide your risk profile. So whether you go to one bank directly or use an originator who applies to all banks on your behalf—the decision-makers remain the same.

But only one route gives you options, leverage, and a clear view of the market: the originator.

One Channel, All the Banks

Another mistake buyers often make is applying through several different channels—directly with one bank, through an originator for another, and maybe a banker for a third.

But this fragmented approach can actually reduce your chances of getting the best deal. Banks may pick up on multiple, inconsistent applications and flag your file. Or worse, you may accept a weaker offer simply because you didn’t get to see the full picture.

When you go through a single originator, you benefit from a unified strategy. You get all the offers, compared side-by-side. And you only accept once you’ve seen what’s on the table—giving you leverage to negotiate further if needed.

So, Who Actually Pays the Bond Originator?

Let’s finally answer the question: you don’t. The bank that grants your loan pays the bond originator a fee for bringing them the business. It’s as simple as that.

There’s no cost added to your bond. No deduction from your loan amount. No fee charged to you as the buyer. It’s a completely free service—designed to benefit you.