If you’re planning to get a mortgage, you might be wondering who pays for a mortgage broker’s services. In this post, we’ll explore the answer to this question and provide some insights into how mortgage broker fees work.
At Pekoe Mortgages, we believe that transparency is essential when it comes to mortgage broker fees. That’s why we’re always upfront about our fees and make sure our clients understand how they work.
So, who usually pays a mortgage broker's fees?
The answer is, it depends. In some cases, the borrower pays the fees, while in others, the lender pays them. Let’s take a closer look at both scenarios.
Are broker fees always charged?
No, broker fees are not always charged. Some mortgage brokers may offer their services at no cost to the borrower. These brokers typically receive a commission from the lender, which they use to cover their expenses and earn a profit. The majority of residential lenders in Canada are accessible by mortgage brokers and pay us a commission upon the closing of the loan. Typically commission payments are standard regardless of the lender
The great benefit to this model is that we are both working to help ensure a quick and seamless closing for you without you being charged for our professional services. You’ll also benefit from comparative shopping as we search the market for the right product and unpublished promotions that you might otherwise might not find on your own. We save you time and money
When is a mortgage broker fee charged?
There are some instances where we will fee a borrower upon closing. But rest assured anytime that this could be a possibility we will disclose all potential charges upfront before proceeding so you can make an informed decision. We want to make sure you are fully aware and comfortable with any solutions we have. Typically these fees are charged if we cannot obtain a traditional loan for you and where the lender does not pay us directly for our work (think private lenders, equity lenders, etc).
Have more questions about who usually pays a mortgage broker's fee? Reach out we're happy to continue the conversation.
