Mortgage Broker Fee

On most A Lender mortgages, the lender pays the broker a commission and the borrower pays no fee. On B Lender and private mortgages — where the lender's commission to the broker is small or zero — the broker may charge the borrower a fee directly. Typical broker fees are 1–2% of the mortgage amount. Provincial regulators require this fee to be disclosed in writing before you sign the mortgage commitment, with the dollar amount and what it covers spelled out. If a broker can't or won't tell you the fee upfront, that's a red flag. Broker fees are most common on private mortgages, refinances of distressed credit, second mortgages, commercial mortgages, and mortgages on non-standard properties (mobile homes, raw land, very rural).