What does a mortgage broker charge?

It depends on the borrower and the broker. Why? Because if the borrower is top notch (excellent income, credit, savings), the bank will pay the broker a finder’s fee. That doesn’t mean that some brokers don’t charge an additional fee. We do not charge. We consider it double dipping.

So sometimes mortgage brokers charge nothing. If you are a top notch borrower and your broker IS charging, you may want to question it…

Brokerage Fee

A mortgage broker can charge a brokerage fee. What’s a brokerage fee? A brokerage fee is a fee for the service that the mortgage broker is providing. Don’t forget, the broker needs to pay a certain chunk of their income to the brokerage that they work under. So they do have costs. If you have insufficient credit or insufficient income to qualify for a mortgage, the broker may take you to a lender that has less strict criteria. Those lenders sometimes do not pay the broker. In those cases it is common to charge a brokerage fee.