Mortgage broker fees: how we are paid, and how to check any broker's licence
You should know exactly who you are dealing with and what they earn, before you sign anything.
Written and reviewed by Asim Ali, Mortgage BrokerUpdated 5 November 2026
Licensed: BCFSA (BC) · RECA (Alberta) · FSRA (Ontario) · check our licences
On bank and most B-lender mortgages, the lender pays the broker and you pay nothing. On private mortgages, the broker usually charges you a fee of 1-2% of the loan, sometimes with a minimum on small loans. You must see it in writing before you commit, and it comes off at funding. A licensed broker never asks for money before your mortgage funds. You can check any broker's licence with BCFSA (BC), RECA (Alberta) or FSRA (Ontario).
When does a mortgage broker charge a fee?
| Type of mortgage | Who pays the broker | Fee to you |
|---|---|---|
| Bank or credit union | The lender | None |
| B-lender | Usually the lender | Usually none |
| Private first mortgage | You, and sometimes the lender too | 1-2% of the loan |
| Private second mortgage | You, and sometimes the lender too | 1-2%, often with a minimum |
Typical for files we place, November 2026. Your fee is shown in dollars on the fee sheet before you commit.
Why private mortgages have a broker fee
Banks and B-lenders pay brokers a fee for bringing them a file. Most private lenders do not, or pay much less. Private files also take more work: finding the lender, ordering the appraisal fast, and planning the exit. So the broker fee is charged to the borrower. It is legal and normal. It must be disclosed.
How we are paid, exactly
- Broker fee. 1-2% of the mortgage on most private files. You see it in dollars before you commit. It is taken off at funding.
- Lender payments. Some lenders also pay us a finder's fee. We tell you in the same documents. It does not change what you pay.
- Related lenders. If a lender is linked to the brokerage or its brokers, we tell you in writing before you sign.
- Nothing up front. No application, consultation or commitment fees. The only cost before funding is the appraisal, which you pay to the appraiser.
Where the fee shows up on your documents
BC
On the remuneration forms (Forms 4 and 7) under the Mortgage Services Act, at least two business days before you sign.
Alberta
On the cost-of-credit disclosure, with the APR, before you agree to the commitment.
Ontario
In FSRA's borrower disclosure, at least two business days before you sign. It lists the lender, every fee and who pays the broker.
How to check a mortgage broker's licence
Get the full names
Ask for the brokerage's legal name and the broker's name. Ours are in the footer of every page.
Check the level in Ontario
Only a Level 2 agent or a broker may arrange a private mortgage in Ontario. Level 1 agents may not.
Look for discipline
Each register shows conditions and past penalties. Walk away if anything looks wrong.
Red flags
Stop if a broker or lender: asks for money before your mortgage funds, promises "guaranteed approval", won't name the lender, rushes you to sign, or tells you to skip your own lawyer. The Canadian Anti-Fraud Centre lists these as common loan-scam signs.
Our licences
Asim Ali is a licensed mortgage broker with Dominion Lending Centres A.I.M.I. Collective Mortgage Group (A.T.S.A.I.M.I. Collective Inc.), licensed in BC, Alberta and Ontario. Licence numbers are listed in the footer of every page. More about Asim Ali.
Broker fee questions
Do mortgage brokers charge a fee in Canada?
Not on most bank and B-lender mortgages, because the lender pays them. On private mortgages, yes, usually 1-2% of the loan, shown before you commit.
Is a broker fee negotiable?
It is set per file and depends on size and work. Any private deal with more than 5% in combined lender and broker fees deserves a second quote.
Can a broker charge me before my mortgage funds?
A licensed broker should not ask for a fee before funding. The appraisal is the only normal up-front cost, and you pay the appraiser directly.
How do I know a broker is licensed?
Search their name on the BCFSA, RECA or FSRA register. In Ontario, check that they are Level 2 or a broker before any private mortgage.
Sources. BCFSA, Mortgage Services Act and disclosure forms · RECA, Real Estate Act Rules s.65(c) and cost-of-credit guidance · FSRA, O. Reg. 188/08 and 409/07 (licence levels) · Canadian Anti-Fraud Centre, loan scam bulletin.
Talk it through with a licensed broker before you decide
Tell us what is going on in a few lines. We call you back the same day with what lenders will say, what it costs in dollars, and how you get back to a bank. If private is the wrong tool, we say so.
- Your full cost, in dollars, before you commit
- The lender named on your commitment letter
- A written plan to exit within 12-24 months
Asim Ali, Mortgage BrokerSurrey office · BC, Alberta and Ontario
Tell us three things. A licensed broker calls you today.
No credit check. No ID. No date of birth. We ask what a lender decides on: the property, the equity and the deadline.
- 1Same-day call from Asim Ali or a licensed colleague
- 2A range for rate, fees and APR on the call
- 3Written commitment in 1-2 business days if you go ahead
- 4Nothing to pay until the mortgage funds
Asim Ali, Mortgage Broker
Licensed in BC, Alberta and Ontario · (604) 591-3590