Real Talk About Lender Fees and Broker Fees for a Private Mortgage

January 30, 2020

I’m so appalled and disappointed. It’s time to have an open discussion about lender fees.

I received an email today from a borrower looking to secure a private second mortgage to the tune of about $150,000 to consolidate some debts and tax arrears that had accumulated.

She shared with me a commitment letter which included $15,000 in fees, split between the broker and lender. It was outrageous and predatory.

Learn more about how private mortgage lenders and brokers set their fees here.

I was able to secure the same mortgage terms with a fee of $4,000 saving her $11,000.

The sad truth is that it happens every day to private mortgage shoppers who are unaware or too ashamed to shop around. I observe there is a feeling from borrowers who need private mortgage money that they don’t deserve better.


The private mortgage market has exploded over recent years with an estimated $63 billion dollars of private or (non-financial institution) money circulating around the Canadian credit space. The market is varied and still underground, which makes it really hard for borrowers to understand if they’re getting good guidance and information.

The moral of the story is that if you are shopping for a private mortgage, you must get more than one quote.

In the case of this particular client, she saved over 73% in fees just by talking to me.

Want to set up a call to chat about your private mortgage quote, lender fees, or get a second opinion?

Please contact me here or go ahead and book a convenient call time directly into my calendar below:


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.