Financing · Mortgage broker · Commission
No, your mortgage broker costs you nothing, and yes, someone pays them. Here is who, how much, under what conditions, and what it changes in their recommendations.
In Quebec, a mortgage broker is generally free for the borrower: they are paid by the lending institution when the loan is funded, through a commission that usually represents 0.5% to 1.2% of the loan amount, varying with the lender, the term (a five-year term pays more than a two-year term) and the broker's volume, sometimes with a bonus. On a $400,000 loan that is $2,000 to $4,800, paid by the bank or credit union, not by you, and with no effect on your rate: the lender pays the broker instead of a salaried branch advisor. The borrower pays fees in only two cases: a private or alternative lender (brokerage fees of 1% to 3% often charged) and certain non-standard files (self-employed without declared income, bad credit, commercial purchase). The broker must disclose their compensation and their ties to lenders; they have been regulated by the AMF since 2020.
The lender. When a loan found by a broker is approved and funded, the bank, credit union or virtual lender pays the brokerage firm a commission ("finder's fee"), and the broker receives a share under their agreement with the firm. The borrower signs no compensation contract with the broker for an ordinary residential loan. The rate offered is not marked up to pay for it: lenders who work with brokers see them as a distribution channel cheaper than a branch, and several virtual lenders have only that channel.
| Situation | Typical compensation | Who pays |
|---|---|---|
| Residential loan, bank or virtual lender, 5-year term | About 0.8% to 1.2% of the loan, sometimes more with volume bonuses | The lender |
| Short term (1 to 3 years), variable | About 0.5% to 0.9% | The lender |
| Renewal or switch to another lender | Like a new loan, by term | The lender |
| Private or alternative ("B") lender | Brokerage fees of 1% to 3% charged to the borrower, plus lender fees | The borrower |
| Commercial or non-standard file | Fees agreed in writing | The borrower |
On a $400,000 five-year loan, the commission paid by the lender to the firm is therefore around $3,200 to $4,800. On a $400,000 private loan at 2% in fees, the borrower pays $8,000, on top of the higher rate: that is the case where the broker has to justify the need for that lender.
A broker paid by the lender has an interest in closing, and a little more interest in a long term and a lender that pays better. Oversight by the Autorité des marchés financiers (licence, duty to disclose compensation and business ties, suitability duty) and competition among brokers limit abuses, but ask three questions: which lenders did you compare and why this one; how much does it pay you on this file; does the same lender offer this rate directly. A good broker answers in writing and presents at least two options with the total cost over the term, not just the rate. The buyer's real estate broker and the mortgage broker are two distinct professionals with two licences; we work with several mortgage brokers without being paid by them.
Not for an ordinary residential loan: the lender pays, generally 0.5% to 1.2% of the loan. Yes, through brokerage fees, with a private lender or on a non-standard file.
No; brokers have access to the same rates, often better, because lenders pay the commission instead of a branch.
Yes, the AMF requires them to disclose their compensation and their ties to lenders; ask for it in writing.
The broker compares several lenders in one application; the bank offers only its products but can negotiate with an established client. Compare the total cost over the term, penalties included.
To run your own numbers: the commission calculator, our fees and the mortgage calculator. French versions are linked below.
The Loaa & Manseur team, led by Lotfi Manseur and Loaa Al Daow, is the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 of large residential teams according to the official RE/MAX ranking, computed on actual transactions. Its Google profile counts 221 reviews with a 4.9 rating. Its offices are at 55 avenue de l'Équinoxe in Brossard, one bridge from the island, and every broker's licence can be checked in the OACIQ public register. Three things to verify yourself before calling us, and to demand of any other broker.
Also available in French: version française de ce guide.
Published September 7, 2026 by the Loaa & Manseur team, the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 according to the official RE/MAX ranking. Tell us about your project.
Équipe no 1 de RE/MAX Platine en 2024 et en 2025, 6e au Québec, 15e au Canada et dans le top 50 mondial au classement officiel RE/MAX. Réponse en moins de 24 heures, sept jours sur sept.