How Much Does a Mortgage Broker Cost in Canada? (2026 Guide)

The short answer: for the vast majority of standard residential mortgages in Canada — purchases, refinances, and renewals with prime "A" lenders — using a mortgage broker costs the borrower $0. The lender pays the broker a commission (called a "finder's fee") when the mortgage funds.

But there are three specific situations where a fee does apply, and every borrower deserves a clear breakdown. Here it is.

Standard residential mortgage: $0 to the borrower

Under Canadian broker practice, prime lenders pay the broker a commission of roughly 0.75%–1.20% of the mortgage amount (on a 5-year term) directly out of their own margin. The borrower sees:

• The same rate the lender would have offered — often better, because brokers have access to broker-only "volume-discount" pricing.
• No line item on the mortgage statement for "broker fee".
• No addition to the mortgage balance.

The Financial Consumer Agency of Canada (FCAC) requires the broker to disclose in writing who is paying them and how much before the mortgage is signed. If you never see a fee disclosure showing a borrower-paid amount, you are not paying one.

When lender-paid works for you

• Purchases up to $1.5M with less than 20% down (insured) — no fee.
• Refinances and switches at renewal — no fee (the new lender pays on funding).
• Standard renewals with any A-lender — no fee.

When a broker fee is charged to the borrower

Three scenarios trigger a real, disclosed fee:

1. Alternative ("B-lender") mortgages

B-lenders (Home Trust, Equitable Bank, MCAP's Eclipse, First National's Excalibur, etc.) generally pay brokers a smaller commission than A-lenders. On files where the deal is complex — bruised credit, self-employed with limited documented income, unusual property — the broker may charge the borrower 0.5% to 1.0% of the mortgage to cover the additional underwriting time.

Typical range on a $500,000 B-lender mortgage: $2,500 – $5,000, disclosed and paid on funding.

2. Private mortgages

Private lenders (mortgage investment corporations, individual investors) do not pay any broker commission. The broker's work is compensated entirely by a borrower-paid fee, typically 1%–3% of the mortgage amount, plus a lender-side fee usually rolled into the mortgage.

Typical range on a $300,000 private second mortgage: $3,000 – $9,000 broker fee, plus a $1,500–$4,500 lender fee. Both are disclosed on the FSRA-mandated Form 3.0 (Ontario) or provincial equivalent before you sign.

3. Commercial mortgages

Commercial (multi-unit residential over 4 units, industrial, retail, land) always involves a borrower-paid fee — typically 1% of the mortgage amount — because commercial lenders do not pay finder's fees the way A-lenders do.

How the disclosure protects you

Every province regulates mortgage brokers. In Ontario, FSRA requires the broker to give you:

• Form 1.1: which lenders the brokerage has access to.
• Form 3.0: full disclosure of every fee, commission, and referral payment on the specific mortgage being offered.

Ask for these forms if they are not offered. Any licensed broker will produce them without hesitation.

Broker vs bank: the real cost comparison

The "cost" question is not just the fee — it is the total interest over the term.

Rates shown are illustrative typical spreads between big-bank posted and broker-channel discounted pricing; live rates change daily. See our current mortgage rates page for today's numbers.

A broker charging you $0 who lands a rate even 0.25% lower than the bank's renewal offer will save the average borrower more in the first year than any conceivable brokerage fee.

What to ask before you sign

• "Are you charging me a fee on this mortgage? If yes, what is the exact dollar amount?"
• "Which lender is paying you, and how much?" (This must be disclosed.)
• "Is this an A, B, or private lender?"
• "If it is a B or private lender, why do we not qualify with an A-lender?"

Bottom line

For a standard purchase, refinance, or renewal in Canada in 2026, the broker's service costs you nothing. The lender pays. You get access to 50+ lenders through one application, and you keep the rate advantage.

Get a free rate check on your specific file in under 60 seconds via our pre-approval form, or compare live options in our rate comparison calculator.