A claw-back is when a lender takes back part or all of the commission it paid to a mortgage broker because the borrower refinances or pays off their loan too soon – usually within the first 12 to 24 months.

In simple terms, if a broker helps you secure a loan and you switch lenders soon after, the bank can “claw back” the commission it originally paid them. This rule is designed to stop brokers from churning clients quickly between lenders, but it can also influence how brokers think about short-term refinancing.

For investors, it’s useful to know that claw-backs don’t cost you anything directly – but they can affect how long brokers prefer you to stay with a lender.