Do Buyers Have to Pay the Broker?

August 16, 2022

Using a mortgage broker can give you a huge boost in the market. As interest rates rise, and the market is still pretty difficult to break into, mortgage brokers can be a key part of helping clients secure the best rate and product. However, in a time where many people’s budgets are stretched pretty thin, buyers may not be able to afford paying for extra services. So, do buyers pay the broker for their services? And if not, who does?

Buyers (usually) do not pay the broker

In most cases, buyers are not responsible for paying brokers for their work. If your mortgage is from a conventional bank or institution, meaning it is not a private or alternative product, you are free and clear from compensating the broker. Lenders are the ones who pay brokers what is called a finder’s fee for connecting them with the client. Lenders often pay the broker a range between 0.5 per cent and 1.2 per cent of the mortgage amount. 

If you’re wondering if this means certain lenders pay brokers more than others, and therefore I might be determined to steer you towards a particular broker, fear not. Finder’s fees are quite standard. The range is due to the length of the mortgage term. The shorter your term, the lower the finder’s fee, and vice versa. Buyers securing a conventional mortgage product won’t have to worry about paying the broker, so they don’t need to budget for extra costs. This can be helpful in such an economy, where extra help in the market is welcome, but not at a higher cost.

A quick note

I’ll be open and say there are certain times when a buyer will have to pay for a broker’s services. For some private products, there are fees involved for the buyer to compensate the broker. This is because in general, private or alternative products are seen as riskier investments. You can ask a broker about any fees that might be involved ahead of time. We’ll be very open!

Other benefits of a broker today

Apart from taking some of the stress away from the mortgage process, why else is a broker super handy today? Well, not only do brokers usually not cost you money, but they can often save you money too. Brokers have access to lenders and products that might not otherwise be available, helping you secure a lower rate. We can also help you budget appropriately, walking you through the costs of a down payment, closing costs, and other fees. Finally, the market is changing rapidly, and brokers always have a finger on the pulse of what’s going on. We keep clients in the know and prevent them from feeling overwhelmed.

Using a mortgage broker is an invaluable part of the mortgage process, especially these days. You don’t need to navigate the market alone, nor should you feel like you’re in the dark with your options. I understand that buyers’ budgets might be tighter with these rate hikes, which is why I want to emphasize that my services are often free, but can save you hassle and money.

I’m dedicated to helping my clients get a handle on their debts. If you have any questions, I’m just a phone call or email away. You can book a call directly into my calendar below, or get in touch with me here.


Christopher Molder

Mortgage Broker

Christopher is a mortgage broker based in Toronto, Canada. And a son of a broker too. He’s a second generation mortgage broker. Following in his father’s steps he joined the family mortgage business straight out of university.