Private Mortgage Broker Fees Ontario

Private Mortgage Broker Fees Ontario - What You Pay, Why, and When

For private mortgage transactions, a broker fee is common and legal - and must be disclosed in writing before you commit under FSRA requirements. This page explains when broker fees apply, how much they typically are, and what FSRA-licensed brokers are required to disclose. HB Mortgage Centre, FSRA #13449.

Apply Now Call (647) 542-6100

FSRA Brokerage #13449Â·Hardeep Batoo, Broker Licence #M13002408Â·Full cost disclosure before commitmentÂ·Ontario-wide

The basics

When do broker fees apply for private mortgages in Ontario?

For standard bank mortgage transactions (A lender), broker compensation is typically paid by the lender - there is no direct fee to the borrower. For private mortgage transactions, a broker fee charged to the borrower is common because private lenders typically pay less or no broker commission. The broker fee compensates for the additional work involved in placing the file.

Under FSRA regulations, broker fees must be disclosed in writing before you commit to the mortgage. The disclosure includes the amount, how it's calculated, and when it's paid. If a broker hasn't provided a written cost of borrowing disclosure, they are not in compliance with FSRA requirements.

HB Mortgage Centre discloses all fees in writing before commitment. No surprises at closing.

Who it's for

When broker fees typically apply vs. when they don't

The fee structure depends on the type of lender and transaction.

Standard bank mortgage - broker fee typically not applicable; lender pays broker directly

B lender mortgage - broker fee may or may not apply depending on lender and transaction

Private first mortgage - broker fee is common; varies by complexity and loan size

Private second mortgage - broker fee is typical; second position files require more work

Emergency/power of sale files - broker fee applies; complexity and urgency justify the fee

Reverse mortgage - compensation paid by CHIP or HomeEquity Bank; no direct fee

Mortgage renewal (standard) - typically lender-paid; no direct fee for standard renewals

Complex self-employed or B lender files - fee depends on transaction type and lender

Rates & costs

What broker fees for private mortgages typically look like

Every fee must be disclosed in writing. These are typical ranges - your specific fee will be stated in your mortgage disclosure document.

All fees must be disclosed in writing before commitment under FSRA requirements. The mortgage disclosure document will specify all costs. Fees listed above are indicative. O.A.C. E.&O.E.

What it costs

Broker fee - private mortgageTypically 1-2% of the loan amount, depending on complexity
Lender feeSeparate from broker fee - charged by the lender, typically 1-3% of loan
Legal feesBoth your lawyer and the lender's lawyer - typically $1,500-$3,500 combined
AppraisalRequired by most private lenders - typically $400-$700
Standard bank mortgageBroker fee typically $0 - lender compensation paid by the institution

How it works

How fee disclosure works at HB Mortgage Centre

Initial review

We review your file and identify whether the transaction will involve a broker fee. We tell you upfront before any application is submitted.

Written cost of borrowing disclosure

Before you commit to any private mortgage, you receive a written disclosure document that shows the rate, all fees, and the total cost of borrowing. This is an FSRA requirement.

No commitment until you review

You review the disclosure before signing anything. If anything isn't clear, we explain it. No pressure to commit before you understand what you're agreeing to.

Fees deducted at funding

Broker and lender fees on private mortgages are typically deducted from the mortgage proceeds at funding. You don't pay out of pocket upfront.

Ongoing transparency

If anything about the fee structure changes from what was disclosed - it gets disclosed again before closing. The number you saw in writing is the number at closing.

FSRA requirement

Written disclosure before commitment is not optional - it's the law

Ontario's Mortgage Brokerages, Lenders and Administrators Act requires FSRA-licensed brokers to provide written cost of borrowing disclosure before a borrower commits to a mortgage. If you're working with anyone - licensed or not - who hasn't provided this disclosure, that's a red flag.

FSRA licensed mortgage brokers →

Why a broker

Full transparency on every file - before you commit

We tell you the fee upfront. We put it in writing. If there's no broker fee - we say that too. If a lender pays us directly, we disclose that relationship as required by FSRA.

Some borrowers hesitate to use a broker because they assume hidden fees. The reality is that FSRA regulation requires full disclosure. The cost structure is clear before you sign anything.

You should know exactly what you're paying before you commit. That's not optional - it's regulatory. And it's how we operate.

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FAQ

Frequently Asked Questions - Private Mortgage Broker Fees Ontario

Do mortgage brokers charge fees for private mortgages in Ontario?+

For private mortgage transactions, a broker fee is common and permitted under FSRA regulations. It must be disclosed in writing before you commit. For standard bank mortgages, broker compensation is typically paid by the lender - no direct fee to you.

How much is a typical broker fee for a private mortgage in Ontario?+

Broker fees for private mortgage transactions are typically 1-2% of the loan amount depending on complexity. The fee is disclosed in writing before commitment in the mortgage disclosure document.

When is the broker fee paid on a private mortgage?+

Broker fees on private mortgages are typically deducted from the mortgage proceeds at funding - not paid upfront out of pocket.

Get a full cost picture before you commit to anything

Call 647-542-6100 or apply online. We review your file, identify the right lender, and provide full written cost disclosure - rate, fees, total cost - before you sign anything.

Apply Call (647) 542-6100

All fees disclosed in writing before commitment as required by FSRA. Indicative fee ranges - actual fees stated in mortgage disclosure document. O.A.C. E.&O.E.

FSRA Brokerage #13449 Â· Hardeep Batoo, Broker Licence #M13002408 Â· Ontario-wide