Mortgage Broker Fee
Understand mortgage broker fees in Canadian real estate — how they work, who pays them, and what borrowers should know about costs and disclosure.
May 22, 2025
What is a Mortgage Broker Fee?
A mortgage broker fee is the compensation paid to a mortgage broker for arranging financing between a borrower and a lender.
Why Mortgage Broker Fees Matter in Real Estate
In Canadian real estate, brokers help buyers access multiple lenders and mortgage products. Fees vary based on the broker’s business model, the type of loan, and lender commission policies.
Key facts about broker fees:- Often paid by the lender for standard residential deals
- May be charged to the borrower for private or complex financing
- Disclosed upfront in a broker fee agreement
Buyers should clarify whether they’ll pay any fees before proceeding. Brokers must follow provincial licensing and disclosure regulations.
Understanding mortgage broker fees helps buyers evaluate the cost of service and compare it with the value of broader lender access.
Example of Mortgage Broker Fees in Action
A borrower using a mortgage broker to secure a private loan pays a 1% fee at closing, as outlined in the broker agreement.
Key Takeaways
- Compensation for broker services.
- May be paid by lender or borrower.
- Common in private or complex deals.
- Must be disclosed in writing.
- Regulated by provincial authorities.
Related Terms
- Mortgage Qualification
- Private Lending
- Broker Disclosure
- Financing Prequalification
- Lender Guidelines
According to CMHC’s chart above, anything short of that keeps price-to-income ratios “near pandemic-era highs,” the agency warns, stressing that “increasing housing supply is the key to restoring affordability.”
485 Logan Avenue as of October 2023/Google Maps
