Mortgage Minute – Broker Fees

TRANSCRIPTION

Can mortgage brokers charge a fee?

Well, the short answer is yes, they can. They can charge you whatever you’re willing to pay but in most instances, a mortgage advisor, especially like at iRefi, will be free and where you will get charged is in your admin fees by the bank, which is pretty normal whether you’re using a broker or not, and you might get charged a fee by a mortgage broker or an advisor when you’re using what’s called a non-bank or a second-tier lender.

So if you have your mortgage submitted to one of the main banks you see on TV, the bank is going to pay the mortgage advisor and you shouldn’t really need to pay for their service. There’s plenty of brokers out there that will do it for free but when submitting an application to a non-bank lender, usually there are application fees. Usually, there’s a little bit more complicated process to go through and sometimes a broker will alert you that there will be a fee up front but should be fairly nominal, and then there might be, you know, a completion fee or an hourly fee.