TIMELINE: The Events In The Ongoing $10M iPro Realty-RECO Scandal

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.

Mortgage Broker Fee

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

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

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