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

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Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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