🏡 How Mortgage Brokers Get Paid in Canada – No Surprises, Just Support

This is a very common question that I get asked as a mortgage broker in Canada.

Like all careers, mortgage brokers have to make a living too!

Generally, 95% of the time, you do not need to pay any fees to work with a mortgage broker.

Quick dive on how it works~

1. You either reached out or was referred to me because you need a mortgage.

2. We connect and I figure out the best plan, lender and product that best suits your budget, situation and goals.

3. Application gets submitted to the lender of your choice. I handle all the communications and back and forth.

4. Mortgage closes

   • We get paid one of the following ways

Here is a breakdown of how we get paid as professional mortgage brokers.

Finders Fees

• Generally a finders fee may be 0.20% - 1.10% of the mortgage amount

  • (varies based on lender, term, mortgage type, etc)

  • Important note:

    • This is before

      • Taxes

      • Brokerage split (yes, mortgage brokerages take a part of the pie🥧)

        • Team and mentor split (some mortgage brokers may be part of a team or under a mentor, they also get a part of the pie🥧)

      • Credit checks (yes, we pay to check your credit, you don't want your credit checked, our pay cheques don't either, but it is a requirement)

      • Marketing

      • Website & blog expenses and much more... 😢 We wish we could keep it all...

        
        

  We only get paid when a mortgage is fully closed. This means, if a mortgage falls apart at the last minute, we do not get paid for any of work we put in (this can sometimes be hours, sometimes weeks and even months). This is why, it is important to trust the mortgage broker you're working with, by providing all the important information required and being upfront for what you're looking for.

  
  
  
  

  Who pays the finders fees?

• Traditional Lenders (bank, credit unions and monoline lenders)

  • The bank or lender will pay the mortgage brokerage and the mortgage brokerage will pay me

    
    

• Alternative Lenders and Private Lenders

  • Borrowers may have to pay a lender fee and a brokerage fee depending on the overall file

    • alternative lenders and private lenders may not always pay a finders fee, therefore a brokerage fee may be required

  In those cases, we will discuss upfront if there are any fees so you can decide if you still wish to move forward. No surprises.

How about mortgage renewals and mortgage refinances?

• Renewals

  • Renewing with current lender

    • Generally, mortgage brokers don't get paid when borrowers choose to renew with existing lenders

  • Renewing with a different lender

    • We get paid as normal!

      
      

• Refinances

  • We get paid as normal for refinances.

Why Do Lenders Pay Mortgage Brokers?

Mortgage brokers are like specialized reps, except we are not exclusive to any one specific lender. Instead of having to hire more bank advisors or mortgage specialists, lenders enjoy and rely on mortgage brokers to bring them qualified clients that fit within their guidelines! In return, they pay us for doing all the work to help them package great mortgage files!

Over the years, borrowers have preferred to work with mortgage brokers rather than their bank directly because there are more options available and are more specialized.

• You get access to various mortgage options and expert guidance without needing to learn everything from scratch like going back to school again

• We get paid for our expert knowledge and time

• Lender gets well-prepared client mortgage files with minimal hassle, they save money on marketing costs and admin fees.

If you've read until this point, congratulations! now you know how we get paid!

We do our best to help make your mortgage journey as seamless and stress-free as possible. We take the time to educate and guide you through the best options.

Have further questions? Lets connect!

BOOK NOW