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
National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
5680 Oak Street in Vancouver and its surrounding context. (MCMP Architects)
Ground-level renderings of the tower proposed for 5680 Oak Street in Vancouver. (MCMP Architects)
