The Simple Answer

For standard mortgage transactions in Canada — purchases, renewals, refinances through A-lenders — using a mortgage broker costs you nothing. Zero. The lender pays the broker a finder's fee when your mortgage closes.

How Broker Compensation Works

When your mortgage funds, the lender pays the broker a finder's fee — typically between 0.5% and 1.2% of the mortgage amount, depending on the lender and term. On a $500,000 mortgage, that's roughly $2,500–$6,000, paid entirely by the lender.

This payment is built into the lender's cost of mortgage origination — not added to your rate or your closing costs. It's how lenders acquire mortgages through the broker channel instead of paying for branches and marketing.

Does This Mean Brokers Have an Incentive to Recommend Higher-Rate Products?

Honest answer: finder's fees do vary by lender, usually by small amounts. A well-run brokerage recommends the right product for the client regardless. Ask your broker to disclose the fee differential between their top recommendations if you're concerned. Maple Key does this proactively.

When a Broker Might Charge You a Fee

  • B-lender situations: some B-lenders pay lower finder's fees — a broker fee may make up the difference
  • Private mortgage situations: private lenders don't pay finder's fees — broker fee applies
  • Complex situations: situations requiring exceptional time and effort may involve a fee
  • All fees must be disclosed in writing before you commit — always ask upfront

Why Brokers Often Get Better Rates Than Banks

Brokers bring significant volume to each lender — hundreds of mortgages per year from a single broker. Lenders offer wholesale pricing and exclusive products in exchange for that volume. These rates are unavailable if you walk into a branch directly. The result: you often get a better rate through a broker than going direct, while also paying nothing for the service.