Mortgage agents and brokers play an essential role in the Canadian Real Estate market
- helping individuals and families find the best mortgage products to meet their financial needs.
- These professionals are licensed and regulated by the provincial governments and typically work for brokerage firms or as independent contractors.
How Do Mortgage Brokers & Agents Get Paid?
Mortgage brokers and agents in Ontario get paid through a combination of commissions and/or fees charged by lending institutions for the mortgage services they provide. Additionally, these commissions can be a percentage of the mortgage amount or a flat fee charged to the borrower or the lender.
In most cases, the commission is paid by the lender in the form of a finders fee (more common with A-Lending). Depending on the lender and the product, commissions typically range from 0.5% to 2% of the mortgage amount.
In addition to commissions, mortgage agents and brokers may also decide to charge fees for their services, otherwise known as a broker fees. These fees cover the costs associated with preparing the mortgage application, running credit checks, and conducting other administrative tasks.
Always Compare
It is important to note that the commission and fees charged may vary between brokers and lending institutions. Borrowers should always ask about these charges and compare them with other options before choosing a broker or lending institution for their mortgage needs.
By working with a mortgage agent or broker, borrowers can save time and money, and access a wider range of mortgage products than they would if they went directly to a lender.
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