Costs & fees
Commission
The fee a mortgage agent earns. Paid by the lender on most A Lender deals; sometimes by the borrower on B Lender or private deals.
On a typical A Lender mortgage, the lender pays the mortgage agent a commission (called a finder's fee) — usually a small percentage of the mortgage amount. This is built into the lender's pricing; the borrower pays nothing extra to the agent.
On B Lender and private mortgages, the lender often pays a smaller commission (or none), so the agent charges the borrower a separate broker fee — typically 1–2% of the mortgage. The fee MUST be disclosed in writing before you sign the mortgage commitment.
Because A and B Lender economics differ, a good agent will always tell you upfront whether your mortgage involves a broker fee and exactly what it is.