Have You Taken Up a Self-Employed Mortgage Broker Position Lately?

But Is It Really Self-Employed… or Just Employed With Commission-Only Pay?

The financial services sector is no stranger to creative job titles and “opportunities.” Over the past few years, more mortgage brokers have been approached with offers to go “self-employed.” On paper, it can sound appealing: flexibility, being your own boss, and unlimited earning potential. But when you peel back the layers, many so-called self-employed roles start looking suspiciously like old-fashioned employment—minus the stability of a salary.

So let’s explore the difference.

The Promise of Self-Employment

When firms advertise self-employed mortgage broker roles, they usually emphasize:

• Autonomy – You control your schedule, your clients, and your workload.

• Higher earnings potential – Instead of a capped salary, you take home a larger cut of commission.

• Entrepreneurship – You’re building your own client bank and brand, rather than just working for someone else.

For some, that’s exactly the setup they want. True self-employment means you’re running a business, managing risk, and hopefully enjoying greater rewards.

The Reality: Commission-Only Employment in Disguise

But here’s where things can get murky. Many “self-employed” broker positions come with conditions that look very much like traditional employment:

• You must work under a specific network or firm, with little freedom to operate independently.

• Your clients technically belong to the firm, not you.

• You’re expected to work certain hours, attend mandatory meetings, and follow company procedures.

• You don’t build an asset (a client base you can take with you).

The only real difference? You don’t get a salary. Instead, you’re paid only when a deal completes—often with a significant split going back to the firm.

That’s not true self-employment—it’s employment risk without employment protection.

Why It Matters

This blurred line isn’t just semantics. It impacts:

• Financial security – Commission-only roles leave you exposed during quiet months.

• Legal protections – As “self-employed,” you may not be entitled to holiday pay, sick pay, or redundancy rights.

• Long-term growth – If you don’t own your client relationships, you’re building someone else’s business, not yours.

Questions to Ask Before Accepting

If you’re considering one of these roles, ask yourself:

1. Do I own my clients and leads, or does the firm?

2. Am I truly free to set my own schedule and business practices?

3. What percentage of my commission am I retaining, and is it worth it compared to being fully independent?

4. Do I have protections in place for income dips, illness, or business costs?

If the answer to most of these questions is “no,” then you’re not really self-employed—you’re just an employee with all the risks and none of the benefits.

The Bottom Line

There’s nothing wrong with working on a commission-only basis if you understand the risks and it fits your goals. But don’t be fooled by the “self-employed” label. True self-employment means ownership, independence, and control—not simply working under another company’s umbrella without the security of a salary.

Before jumping in, weigh your options carefully. Ask tough questions. And make sure that what you’re signing up for is what you think you’re signing up for.