Do mortgage brokers charge a fee?

Not on A lending, where the lender pays the broker the commission on closing. A broker fee applies where no lender commission is available, which in practice means Alternative and B lenders and private lenders. Alongside it there is normally a lender fee and the legal cost of registering the charge.

What is the difference between a broker commission and a broker fee?

A commission is paid to the broker by the lender on closing, out of the lender's margin. It does not come from the borrower and is not added to the mortgage. A broker fee is paid by the borrower, on files where no lender commission is available. Figures such as 0.5% to 1% usually refer to lender-paid commission, not to anything the borrower pays.

Answers

Costs & Fees

Q: Who pays mortgage broker fees in Ontario?

On A lending there is no fee to the borrower. The lender pays the broker the commission on closing. On Alternative or B lending, and on private lending, there is a broker fee paid by the borrower, disclosed upfront and in writing before the borrower commits.

The rate is the number everyone asks about. It’s often not the number that matters most.

On a one-year deal, the fees can matter more than the rate itself. A percentage point looks dramatic and costs less than you’d think over twelve months. A few thousand in fees, spread over the same twelve months, costs more than you’d think. That’s why I show the full dollar cost, not just the percentage.

The answers in this centre

More answers being added — what a private mortgage costs all in, and how lender and broker fees are set.

What you’ll actually be charged

Cost	What it is	Where it applies
Lender fee	Charged by the lender for arranging the loan	Mainly B and private
Broker fee	Charged where the lender doesn’t pay the broker	Mainly B and private
Legal	The lawyer handling paperwork and registration	All transactions
Appraisal	An independent opinion of the property’s value	Most files — see below
Registration	Registering the charge on title	A, B and private alike

Who pays me

The direct answer

On A lending there is no fee to you. The lender pays me the commission on closing. On Alternative or B lending, and on private lending, there is a broker fee and you pay it — disclosed to you upfront and in writing, before you commit to anything.

Two completely different things get called “broker fees”, and most pages blur them.

The commission a lender pays me on closing, for placing your mortgage with them. It comes out of the lender’s margin. It does not come from you and it is not added to your mortgage. This is the arrangement on A lending.
A fee you pay me on a file where no lender commission is available — which in practice means Alternative and B lenders, and private lenders.

If a page quotes you a figure like “0.5% to 1%” without saying which of those two it means, it is describing the first one. That number has nothing to do with what you would pay.

A lending

No broker fee. You will still have legal costs, usually an appraisal, and registration — see the table above. But nothing comes to me from you.

Alternative, B and private lending

There is a broker fee, and you pay it. Alongside it there is normally a lender fee, and the legal cost of registering the charge.

What it comes to depends on the file — a clean second mortgage on a Brampton semi with good equity is not the same work as a third charge on a rural property on well and septic. You will see every fee, in dollars, on one page, before you commit to anything.

Every fee on your file is disclosed upfront and in writing. Not mentioned on a call, not revealed at signing — written down, in dollars, while you still have the room to say no. If a fee ever appears that you had not already seen in writing, ask about it, and keep asking until the answer makes sense.

Two things worth knowing about the appraisal

Who pays. An appraisal typically runs $300–$500. On an insured mortgage — under 20% down — the insurer usually covers it. On conventional, B and private files, you generally pay it upfront.

Who owns it. You pay the fee. The lender owns the report. That surprises almost everyone, and it matters if your file has to move to a different lender. The full answer is here.

On the rate itself

I won’t quote a private or second-mortgage rate on a web page, and you should be wary of anyone who does. It depends on your equity, the property, whether it’s owner-occupied or a rental, whether it’s rural, whether it’s on well and septic, the area, and your exit strategy.

What I will do is show you the complete dollar cost before you decide anything.

What to do next

Send me the details and you’ll get the full breakdown — every fee, in dollars, before you commit to anything.

Talk it through → · Back to all answers →

General information about Ontario mortgages — not financial, legal or mortgage advice. Costs vary by lender, lawyer and transaction. Every file is reviewed individually.